PR.COMMISSIONER OF INCOME-TAX-I vs. M/S. JIVRAJ TEA & INDUSTRIES LTD

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TAXAP/159/2017HC GujaratGJHC24056819201717 September 2018Bench: HONOURABLE MR. JUSTICE AKIL KURESHI,HONOURABLE MR. JUSTICE B.N. KARIA3 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat at Ahmedabad granted the Revenue's request to withdraw the Tax Appeals. The Court held that the Revenue, acting under instructions from the department, was permitted to withdraw these appeals. The rationale for the withdrawal, as presented by the Revenue and accepted by the Court, was that the tax effect in each of these appeals fell below the minimum threshold limit specified in the CBDT circular dated July 11, 2018. This circular provides guidelines for the department regarding the preference and maintenance of appeals before the High Court. Since the condition of the minimum tax effect was not met, the Court allowed the withdrawal. Consequently, the Tax Appeals were disposed of as withdrawn. No specific issue regarding the merits of the original assessment or the orders under challenge was decided.

What were the facts?

The Commissioner of Income Tax I (the Revenue) filed numerous Tax Appeals before the High Court of Gujarat at Ahmedabad. These appeals were against the assessee, Mahendra Shantilal Vyas. The appeals challenged various orders or actions, though the specific nature of these challenges and the assessment years are not detailed in the provided text. The procedural history indicates that the Revenue, under instructions from the department, sought permission to withdraw these appeals. The reason cited for withdrawal was that the tax effect involved in these appeals was below the minimum threshold limit prescribed by the CBDT in its circular dated July 11, 2018, which governs the department's ability to prefer and maintain appeals before the High Court.

What were the issues?

1. Whether the Revenue is permitted to withdraw the present Tax Appeals on the ground that the tax effect is below the minimum threshold limit prescribed by the CBDT circular dated 11.07.2018, thereby rendering the appeals non-maintainable before the High Court. Assessee's Contentions: The judgment does not record any specific contentions made by the assessee. The assessee's advocates were present, but their arguments are not detailed. Revenue's Contentions: The Revenue, through its learned advocate, sought permission to withdraw the appeals. The sole ground for withdrawal was that the tax effect involved in these appeals was below the minimum threshold limit stipulated in the CBDT circular dated 11.07.2018. This circular, according to the Revenue, enables the department to prefer and maintain appeals before the High Court only if the tax effect meets the specified limit. The Revenue relied on this circular as the basis for its request to withdraw.

AI-generated summary — verify with the full judgment below

C/TAXAP/1124/2014 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1124 of 2014 With R/TAX APPEAL NO. 109 of 2016 With R/TAX APPEAL NO. 1216 of 2014 With R/TAX APPEAL NO. 1251 of 2014 With R/TAX APPEAL NO. 1385 of 2014 With R/TAX APPEAL NO. 148 of 2016 With R/TAX APPEAL NO. 159 of 2017 With R/TAX APPEAL NO. 188 of 2015 With R/TAX APPEAL NO. 189 of 2015 With R/TAX APPEAL NO. 204 of 2016 With R/TAX APPEAL NO. 258 of 2017 With R/TAX APPEAL NO. 273 of 2017 With R/TAX APPEAL NO. 275 of 2017 With R/TAX APPEAL NO. 329 of 2015 With R/TAX APPEAL NO. 330 of 2015 With R/TAX APPEAL NO. 366 of 2015 With R/TAX APPEAL NO. 390 of 2016 With R/TAX APPEAL NO. 391 of 2016 With R/TAX APPEAL NO. 399 of 2015 With R/TAX APPEAL NO. 400 of 2015 With R/TAX APPEAL NO. 435 of 2015 Page 1 of 3

C/TAXAP/1124/2014 ORDER With R/TAX APPEAL NO. 589 of 2015 With R/TAX APPEAL NO. 630 of 2018 With R/TAX APPEAL NO. 673 of 2018 With R/TAX APPEAL NO. 692 of 2017 With R/TAX APPEAL NO. 696 of 2016 With R/TAX APPEAL NO. 781 of 2015 With R/TAX APPEAL NO. 786 of 2015 With R/TAX APPEAL NO. 876 of 2017 With R/TAX APPEAL NO. 930 of 2017 With R/TAX APPEAL NO. 932 of 2017 With R/TAX APPEAL NO. 989 of 2011 ========================================================== COMMISSIONER OF INCOME TAX I Versus MAHENDRA SHANTILAL VYAS ========================================================== Appearance: MR.VARUN K.PATEL, Mrs. KALPANA RAVAL, MRS MAUNA BHATT for the PETITIONER(s) No. 1 MR RK PATEL, MR B S SOPARKAR, MR MANISH SHAH, MR TUSHAR HEMANI, MR BHAUMIK DHOLARIYA for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI and HONOURABLE MR.JUSTICE B.N. KARIA

Date : 17/09/2018 ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) Learned advocate for the appellant, under instructions from the department, sought permission to withdraw these appeals since the Page 2 of 3

C/TAXAP/1124/2014 ORDER tax effect involved in these appeals is below the minimum threshold limit provided by CBDT in its circular dated 11.07.2018 enabling the department to prefer and maintain appeals before the High Court. Permission is granted. Tax Appeals are disposed of accordingly. (AKIL KURESHI, J) (B.N. KARIA, J) JYOTI V. JANI Page 3 of 3

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