PRINCIPAL COMMISSIONER OF INCOME TAX - 2 vs. JAGAT FOODS PVT LTD

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TAXAP/244/2017HC GujaratGJHC24056872201727 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 Consequently, the appeal was dismissed as withdrawn.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. No decision on the merits of the appeal was made. The operative direction was the dismissal of the appeal as withdrawn with the specified liberty.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax - 2 against Jagat Foods Pvt Ltd. The appeal was before the High Court of Gujarat at Ahmedabad. The learned Senior Standing Counsel for the appellant submitted a note along with a communication from the Joint Commissioner of Income Tax (Judicial). This communication instructed the withdrawal of the appeal. The reason cited for withdrawal was that 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. A right to revive the appeal was reserved in case of any discrepancy noticed later.

What were the issues?

1. Whether the appeal should be withdrawn as per the instructions of the CBDT Circular No.3/2018 due to the tax effect being below the monetary limit. Assessee's Contention: The assessee did not make any arguments as the appeal was withdrawn by the revenue. 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 revenue argued that the tax effect was below the monetary limit of Rs.50,00,000/- and the case did not fall into 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 discrepancy is found later.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/244/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 244 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX - 2 Versus JAGAT FOODS PVT LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 DARSHAN R PATEL(8486) 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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