THE PRINCIPAL COMMISSIONER OF INCOME TAX-2 vs. GUJARAT MINERAL DEVELOPMENT CORPORATION LTD

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TAXAP/601/2015HC GujaratGJHC24047902201527 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 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 The appeal was dismissed as withdrawn.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 came to notice at a later stage, acknowledging that human error cannot be ruled out. The decision to withdraw was based on the Revenue's submission that the tax effect was below the prescribed monetary limit and did not fall under any exceptional categories as per the CBDT Circular. No decision was made on the merits of the original appeal.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-2 against Gujarat Mineral Development Corporation Ltd. The appeal was before the High Court of Gujarat at Ahmedabad. The Revenue, through learned Senior Standing 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 because the tax effect was below the monetary limit of Rs. 50,00,000/- and the case did not fall under any exceptional clauses of 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 Whether the appeal should be withdrawn by the Revenue due to the tax effect being below the monetary limit prescribed by CBDT Circular No. 3/2018 and not falling under any exceptional clauses. Assessee's Contentions: The judgment does not record any specific contentions from the assessee, Gujarat Mineral Development Corporation Ltd. Revenue's Contentions: The Revenue, through its counsel, submitted a note and a communication from the Joint Commissioner of Income Tax (Judicial) instructing the withdrawal of the appeal. The grounds for withdrawal were that the tax effect was below the monetary limit of Rs. 50,00,000/- and the case did not fit any exceptional clauses as per CBDT Circular No. 3/2018 dated 11.07.2018. The Revenue also sought liberty to revive the appeal if any discrepancies were found later.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/601/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 601 of 2015 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX-2 Versus GUJARAT MINERAL DEVELOPMENT CORPORATION LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 MR B S SOPARKAR(6851) for the RESPONDENT(s) No. 1 RULE SERVED(64) 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) Vijay

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