COMMISSIONER OF INCOME TAX-II vs. M/S KISAN COLD STORAGE

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TAXAP/647/2011HC GujaratGJHC24045107201127 November 2018Author: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE DR. JUSTICE A. P. THAKER1 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal granted permission as prayed for by the Revenue. The appeal was dismissed as withdrawn. The reasoning was based on the Revenue's submission that the tax effect was below the monetary limit stipulated by CBDT Circular No. 3/2018 and that the case did not qualify for any exceptions. The Tribunal also noted the Revenue's reservation of a right to revive the appeal in case of future discrepancies, acknowledging the possibility of human error. The operative direction was to dismiss the appeal as withdrawn with the liberty granted.

What were the facts?

The Commissioner of Income Tax-II (Revenue) filed an appeal before the High Court of Gujarat at Ahmedabad against an order concerning M/s Kisan Cold Storage (Assessee). The appeal was filed for assessment year(s) not specified in the judgment. The Revenue, through its learned Senior Standing Counsel, submitted a note along with a communication from the Joint Commissioner of Income Tax (Judicial). This communication instructed the withdrawal of the appeal because the tax effect was below the monetary limit of Rs. 50,00,000/- and the case did not fall under any exceptional clauses as per CBDT Circular No. 3/2018 dated 11.07.2018. The Revenue reserved a right to revive the appeal if any discrepancy was discovered later.

What were the issues?

1. Whether the appeal should be permitted to be withdrawn by the Revenue. This issue turns on the application of CBDT Circular No. 3/2018, which sets monetary limits for filing appeals. The Revenue argued that the tax effect is below the prescribed limit and the case does not fall under any exceptions, thus justifying withdrawal. The Assessee's arguments are not recorded in the judgment. The Tribunal had to decide whether to grant permission for withdrawal based on the Revenue's submissions and the applicable circular.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/647/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 647 of 2011 ================================================================ COMMISSIONER OF INCOME TAX-II Versus M/S KISAN COLD STORAGE ================================================================ Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 MR SN DIVATIA(1378) for the RESPONDENT(s) No. 1 ================================================================ CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE DR.JUSTICE A. P. THAKER Date : 27/11/2018

ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI)

1.

Ms. Mauna Bhatt, learned Senior Standing Counsel for the appellant has submitted a note together with a communication dated 29.10.2018 of the Joint Commissioner of Income Tax (Judicial), for Principal Chief Commissioner of Income Tax, Gujarat, Ahmedabad, instructing her to withdraw the appeal as the tax effect is below the monetary limit of Rs.50,00,000/- and the case does not fall in the exceptional clauses as per the CBDT Circular No.3/2018 dated 11.07.2018, reserving a right to revive the appeal in case any discrepancy comes to notice at a later stage after withdrawal of the appeal as human error cannot be ruled out.

2.

Permission as prayed for is granted. The appeal is dismissed as withdrawn with liberty as aforesaid. (HARSHA DEVANI, J) (A. P. THAKER, J) R.S. MALEK

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