THE PRI.COMMISSIONER OF THE INCOME TAX-1 vs. ABHISHEK ENGINEERS PVT.LTD.
What did the High Court hold?
The High Court of Gujarat granted permission to withdraw the appeal as prayed for by the Revenue. The appeal was accordingly dismissed as withdrawn.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, acknowledging that human error cannot be ruled out. The reasoning for the decision is solely based on the Revenue's submission and the instruction to withdraw due to the tax effect being below the prescribed monetary limit and the absence of exceptional circumstances, as per CBDT Circular No. 3/2018. No decision on the merits of the case was made. The issue of whether the appeal should have been filed in the first place or the substantive grounds of appeal were not decided.
What were the facts?
The appeal was filed by the Principal Commissioner of Income Tax-1 (Revenue) against Abhishek Engineers Pvt. Ltd. (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 is that the Revenue, through its counsel, submitted a note along with a communication from the Joint Commissioner of Income Tax (Judicial) instructing the withdrawal of the appeal. This instruction was based on the tax effect being below the monetary limit of Rs. 50,00,000/- as per CBDT Circular No. 3/2018, and the case not falling under any exceptional clauses. The amount in dispute is not explicitly stated, other than the tax effect being below Rs. 50,00,000/-.
What were the issues?
1. Whether the appeal should be permitted to be withdrawn by the Revenue. This question turns on the applicability of CBDT Circular No. 3/2018 regarding monetary limits for filing appeals. Assessee's Contentions: The judgment does not record any specific contentions from the Assessee. The Assessee is represented by Mr. Manish J Shah. Revenue's Contentions: The Revenue, through its counsel Ms. Mauna Bhatt, submitted a note and a communication from the Joint Commissioner of Income Tax (Judicial) instructing the withdrawal of the appeal. The grounds for withdrawal are that the tax effect is below the monetary limit of Rs. 50,00,000/- as stipulated in CBDT Circular No. 3/2018, and the case does not fall within the exceptional clauses mentioned in the circular. The Revenue also sought to reserve the right to revive the appeal if any discrepancy is discovered later.
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) Vijay
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