COMMISSIONER OF INCOME TAX (TDS) vs. SURYA LAND DEVELOPERS

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TAXAP/330/2015HC GujaratGJHC24047787201517 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, per the oral order, granted the permission sought by the learned advocate for the appellant (Revenue) to withdraw the appeals. The reasoning provided was that the tax effect involved in these appeals was below the minimum threshold limit specified in the CBDT circular dated July 11, 2018. This circular enables the department to prefer and maintain appeals before the High Court only if the tax effect meets the prescribed limit. Therefore, the appeals were disposed of as withdrawn. No decision on the merits of the substantive tax issues was made. The ratio decidendi is that appeals can be withdrawn by the Revenue if they do not meet the monetary threshold for litigation as per CBDT circulars, irrespective of the merits of the case.

What were the facts?

The Commissioner of Income Tax I (Revenue) filed numerous Tax Appeals before the High Court of Gujarat at Ahmedabad against the orders passed by the Income Tax Appellate Tribunal (ITAT) concerning various assessment years. The appeals were filed against the respondent, Mahendra Shantilal Vyas (Assessee). The Revenue, through its learned advocate, 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 Central Board of Direct Taxes (CBDT) in its circular dated July 11, 2018, which governs the department's ability to prefer and maintain appeals before the High Court. The High Court granted the permission to withdraw.

What were the issues?

1. Whether the Revenue is permitted to withdraw the appeals on the ground that the tax effect is below the threshold limit prescribed by the CBDT circular dated July 11, 2018? (Question of procedure/administrative policy) Contentions: Assessee: No arguments recorded for the assessee in this regard. Revenue: The Revenue contended that the tax effect in these appeals falls below the minimum threshold limit stipulated by the CBDT circular dated July 11, 2018. This circular empowers the department to withdraw or not pursue appeals where the tax effect is below a certain amount, thereby streamlining litigation and conserving resources. The Revenue sought permission to withdraw the appeals based on this administrative instruction.

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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