COMMISSIONER OF INCOME TAX-II vs. INDIAN RESEARCH MANIFESTATION LABS PVT LTD

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TAXAP/108/2011HC GujaratGJHC24044955201127 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 The appeal was dismissed as withdrawn.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 at a later stage if any discrepancy comes to notice, acknowledging that human error cannot be ruled out. The finding is based on the Revenue's submission and the CBDT circular guiding such withdrawals. The specific merits of the original appeal were not examined or decided.

What were the facts?

The appeal was filed by the Commissioner of Income Tax-II (the Revenue) against Indian Research Manifestation Labs Pvt Ltd (the assessee). 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 Revenue's instruction to withdraw 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 Revenue reserved a right to revive the appeal if any discrepancy is found later.

What were the issues?

1. Whether the appeal should be permitted to be withdrawn by the Revenue? (Question of procedure turning on CBDT Circular No. 3/2018). Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The Revenue, through its counsel, submitted a note and a communication from the Joint Commissioner of Income Tax (Judicial) instructing 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 fall under the exceptional clauses of CBDT Circular No. 3/2018 dated 11.07.2018. The Revenue also sought to reserve a right to revive the appeal in case of any future discrepancy due to potential human error.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/108/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 108 of 2011 ================================================================ COMMISSIONER OF INCOME TAX-II Versus INDIAN RESEARCH MANIFESTATION LABS PVT LTD ================================================================ Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 RULE UNSERVED(68) 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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