COMMISSIONER OF INCOME TAX-II vs. GUJARAT CREDIT CORP. LTD

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TAXAP/1293/2009HC GujaratGJHC24040983200927 November 2018Author: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE DR. JUSTICE A. P. THAKER1 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court granted the permission as prayed for by the revenue. Consequently, the appeal was dismissed as withdrawn. The court also granted the liberty to the revenue to revive the appeal in case any discrepancy comes to notice at a later stage, acknowledging that human error cannot be ruled out. The reasoning for the dismissal was solely based on the revenue's submission regarding the tax effect being below the prescribed monetary limit and the absence of exceptional circumstances, as per the CBDT Circular. No decision was made on the merits of the original appeal. The ratio decidendi is that an appeal can be withdrawn by the revenue if the tax effect is below the prescribed monetary limit and no exceptional circumstances exist, with liberty to revive if errors are found.

What were the facts?

This case involves a Tax Appeal filed by the Commissioner of Income Tax-II against Gujarat Credit Corp. Ltd. The appeal was filed before the High Court of Gujarat at Ahmedabad. The assessment year(s) are not explicitly mentioned in the provided text. The order under challenge is the appeal itself, filed by the revenue. The procedural history indicates that the revenue, through its counsel Ms. Mauna Bhatt, submitted a note along with a communication from the Joint Commissioner of Income Tax (Judicial). This communication instructed the withdrawal of the appeal due to the tax effect being below the monetary limit of Rs. 50,00,000/-, as per CBDT Circular No. 3/2018. The amount in dispute is not explicitly stated, other than the tax effect being below Rs. 50,00,000/-.

What were the issues?

The primary issue before the High Court was whether to grant permission to the revenue to withdraw the appeal. The revenue's contention, as presented by Ms. Mauna Bhatt, was that the appeal should be withdrawn because the tax effect was below the monetary limit of Rs. 50,00,000/- as stipulated by CBDT Circular No. 3/2018. Furthermore, the revenue argued that the case did not fall under any exceptional clauses mentioned in the said circular. The revenue also sought to reserve a right to revive the appeal if any discrepancies were discovered later, acknowledging the possibility of human error. The judgment does not record any arguments from the respondent, Gujarat Credit Corp. Ltd.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

C/TAXAP/1293/2009 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1293 of 2009 ================================================================ COMMISSIONER OF INCOME TAX-II Versus GUJARAT CREDIT CORP. LTD ================================================================ Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 MR JP SHAH(1054) for the RESPONDENT(s) No. 1 MR MANISH J SHAH(1320) 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)

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.

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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