COMMISSIONER OF INCOME TAX-II vs. KIRIDYES & CHEMICALS (P) LTD

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TAXAP/2654/2010HC GujaratGJHC24046459201027 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 for the withdrawal of 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 The appeal was dismissed as withdrawn.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, acknowledging that human error cannot be ruled out. The reasoning for the decision is solely based on the Revenue's instruction to withdraw due to the low tax effect and non-applicability of exceptional clauses as per the CBDT Circular. No decision on the merits of the original appeal was made. The specific finding on any substantive issue is not recorded as the appeal was withdrawn.

What were the facts?

The appeal was filed by the Commissioner of Income Tax-II against an order concerning Kiridyes & Chemicals (P) Ltd. The assessment year(s) are not explicitly stated. The appeal challenges an order passed by an authority below the High Court, the details of which are not specified. The procedural history involves the Revenue's decision to withdraw the appeal. The tax effect involved is below the monetary limit of Rs. 50,00,000/-, and the case does not fall under the exceptional clauses of CBDT Circular No. 3/2018.

What were the issues?

1. Whether the appeal should be permitted to be withdrawn by the Revenue. This issue turns on the applicability of CBDT Circular No. 3/2018 and the tax effect involved. Contentions: Assessee: No arguments are recorded for the assessee. Revenue: The Revenue, through its counsel, submitted a note and a communication from the Joint Commissioner of Income Tax (Judicial) instructing withdrawal of the appeal. This instruction is based on the tax effect being below Rs. 50,00,000/- and the case not falling within the exceptional clauses of CBDT Circular No. 3/2018. The Revenue also sought to reserve a right to revive the appeal in case of any later discovered discrepancy, acknowledging the possibility of human error.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/2654/2010 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 2654 of 2010 ================================================================ COMMISSIONER OF INCOME TAX-II Versus KIRIDYES & CHEMICALS (P) LTD ================================================================ Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 MR TUSHAR P HEMANI(2790) for the RESPONDENT(s) No. 1 MS VAIBHAVI K PARIKH(3238) 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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