COMMISSIONER OF INCOME TAX-II vs. M/S FRONTLINE CORPORATION LTD

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TAXAP/429/2011HC GujaratGJHC24045018201127 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 The appeal was dismissed as withdrawn.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 after the withdrawal, acknowledging that human error cannot be ruled out. The decision to withdraw was based on the Revenue's internal policy and instructions derived from CBDT Circular No. 3/2018, which sets monetary limits for filing appeals. The merits of the original appeal were not adjudicated upon.

What were the facts?

This case involves an appeal filed by the Commissioner of Income Tax-II (the Revenue) against M/s Frontline Corporation Ltd (the Assessee). The appeal pertains to an assessment year not explicitly stated in the provided text. The Revenue, through its counsel, submitted a note and a communication from the Joint Commissioner of Income Tax (Judicial) dated 29.10.2018. This communication instructed the counsel to withdraw 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. The Revenue also reserved the 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 Whether the appeal should be withdrawn by the Revenue based on the CBDT Circular No. 3/2018 and the tax effect being below the monetary limit. Assessee's Arguments: The judgment does not record any arguments from the Assessee's side. The withdrawal is based on instructions from the Revenue's superior authority. Revenue's Arguments: The Revenue, through its counsel, argued that the appeal should be withdrawn as the tax effect is below the monetary limit of Rs. 50,00,000/- and the case does not fall within the exceptional clauses of CBDT Circular No. 3/2018 dated 11.07.2018. They also sought liberty to revive the appeal in case of any future discrepancy due to human error.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/429/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 429 of 2011 ================================================================ COMMISSIONER OF INCOME TAX-II Versus M/S FRONTLINE CORPORATION LTD ================================================================ Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(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) R.S. MALEK

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