COMMISSIONER OF INCOME TAX-II vs. INDIAN RESEARCH MANIFESTATION LABS PVT LTD
What did the High Court hold?
The High Court granted permission to withdraw the appeal as prayed for by the revenue. The appeal was dismissed as withdrawn. The court also granted liberty to the revenue to revive the appeal in case any discrepancy comes to notice at a later stage after the withdrawal, acknowledging that human error cannot be ruled out. No specific finding was made on the merits of the original appeal, as the decision was based on the revenue's request for withdrawal. The principle that can be cited is that courts may allow withdrawal of appeals based on administrative instructions and monetary limits set by the revenue authorities, provided no prejudice is caused to the other party and liberty to revive is granted in exceptional circumstances.
What were the facts?
The appeal was filed by the Commissioner of Income Tax-II against Indian Research Manifestation Labs Pvt Ltd. The assessment year(s) are not specified. The order or action under challenge is the appeal itself, filed before the High Court of Gujarat. The procedural history involves the appellant's counsel submitting a note along with a communication from the Joint Commissioner of Income Tax (Judicial) dated 29.10.2018. This communication instructed the counsel to withdraw the appeal because the tax effect was below the monetary limit of Rs.50,00,000/- and the case did not fall under exceptional clauses of CBDT Circular No.3/2018 dated 11.07.2018. A right to revive the appeal was reserved in case of future discrepancies.
What were the issues?
1. Whether the appeal should be withdrawn as per the instructions received from the revenue, considering the tax effect is below the monetary limit prescribed by CBDT Circular No.3/2018. Assessee's Arguments: The assessee's arguments are not recorded as they were not represented. The revenue, through its counsel, argued that the appeal should be withdrawn. The reasoning provided was that the tax effect was below the monetary limit of Rs.50,00,000/- as per CBDT Circular No.3/2018 dated 11.07.2018, and the case did not fall within the exceptional clauses mentioned in the circular. The revenue also sought to reserve a right to revive the appeal in case of any discrepancies arising from human error.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
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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