COMMISSIONER OF INCOME TAX-III vs. ASHOK ENGINEERING AND FOUNDRY WORKS

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TAXAP/2552/2009HC GujaratGJHC24041123200927 November 2018Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE DR. JUSTICE A. P. THAKER2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal is disposed of as not pressed. This decision was based on the admitted position between the parties that the tax effect involved in the appeal is less than Rs. 50,00,000/-. The Court took into consideration CBDT Circular No. 3/2018 dated 11th July, 2018, which mandates that no appeal where the tax effect does not exceed Rs. 50,00,000/- shall be filed before the High Court and has been made retrospectively applicable to pending appeals. Consequently, the learned senior standing counsel for the appellant did not press the appeal. The operative direction is that the appeal is disposed of as not pressed. The Court also noted that if there is any error in the computation of the tax effect or if the circular is not applicable for any reason, the appellant would be at liberty to seek revival of the appeal. No specific issue was left undecided, as the appeal was withdrawn by the appellant.

What were the facts?

This is an appeal filed by the Commissioner of Income Tax-III against Ashok Engineering and Foundry Works. The appeal pertains to an assessment year not explicitly stated in the provided text. The order or action under challenge is the decision of the Income Tax Appellate Tribunal (ITAT), though the specific ITAT order is not detailed. The procedural history is that the appeal was filed before the High Court of Gujarat. A key fact is that the tax effect involved in the appeal is admitted to be less than Rs. 50,00,000/-.

What were the issues?

1. Whether the appeal filed by the revenue is maintainable before the High Court given the tax effect involved? (Question of law, turning on the applicability of CBDT Circular No. 3/2018). Assessee's Contention: The respondent (Ashok Engineering and Foundry Works) is not recorded as having made any specific arguments. However, the appeal is disposed of based on the revenue's submission regarding the tax effect. Revenue's Contention: The learned senior standing counsel for the appellant (Commissioner of Income Tax-III) does not press the present appeal, admitting that the tax effect involved is less than Rs. 50,00,000/-. This is in light of CBDT Circular No. 3/2018 dated 11th July, 2018, which stipulates that appeals with a tax effect not exceeding Rs. 50,00,000/- shall not be filed before the High Court and is retrospectively applicable to pending appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/2552/2009 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 2552 of 2009 ========================================================== COMMISSIONER OF INCOME TAX-III Versus ASHOK ENGINEERING AND FOUNDRY WORKS ========================================================== Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 MRS SWATI SOPARKAR(870) 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. Heard Mrs. Mauna Bhatt, learned senior standing counsel for the appellant and Mrs. Swati Soparkar, learned advocate for the respondent. 2. It is an admitted position between the parties that the tax effect involved in this appeal is less than Rs.50,00,000/-. Under the circumstances, in the light of the Circular No.3/2018 dated 11th July, 2018 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes which provides that no appeal wherein the tax effect does not exceed the monetary limit of Rs.50,00,000/- shall be filed before the High Court and has also been made retrospectively applicable to pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. Page 1 of 2

C/TAXAP/2552/2009 ORDER 3. The appeal is accordingly disposed of as not pressed in the light of the Circular dated 11th July, 2018. However, in case there is any error in the computation of the tax effect involved or if for any reason, the circular is not applicable, it would be open for the appellant to seek revival of the appeal. (HARSHA DEVANI, J) (A. P. THAKER, J) B.U. PARMAR Page 2 of 2

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