COMMISSIONER OF INCOME TAX-III vs. NIRMA CONSUMER CARE LTD

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TAXAP/62/2011HC GujaratGJHC24044937201104 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 granted permission to the Revenue to withdraw the appeals. The Court reasoned that the Revenue's request was based on a CBDT circular dated July 11, 2018, which provides guidelines for the department to prefer and maintain appeals before the High Court based on a minimum tax effect. Since the tax effect in these appeals was below the prescribed threshold, the Court found no impediment to allowing the withdrawal. Consequently, all the Tax Appeals were disposed of as withdrawn. The Court did not decide on the merits of the original dispute between the Revenue and the Assessee.

What were the facts?

The Commissioner of Income Tax-I (Revenue) filed numerous Tax Appeals before the High Court of Gujarat at Ahmedabad. The appeals were against the orders passed by the Income Tax Appellate Tribunal (ITAT) concerning various assessment years. The respondent in these appeals is Sunilkumar B. Handa (Assessee). The Revenue 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.

What were the issues?

1. Whether the Revenue is permitted to withdraw the appeals filed before the High Court, considering the tax effect is below the CBDT's prescribed threshold limit for maintaining appeals. Assessee's Arguments: The judgment does not record any specific arguments made by the assessee. The matter proceeded based on the Revenue's request. Revenue's Arguments: The Revenue, through its learned advocate, sought permission to withdraw the appeals. The basis for this request was CBDT Circular dated July 11, 2018, which sets a minimum threshold for the tax effect below which appeals should not be preferred or maintained before the High Court. The Revenue contended that the tax effect in the present appeals fell below this stipulated limit.

AI-generated summary — verify with the full judgment below

C/TAXAP/1420/2007 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1420 of 2007 With R/TAX APPEAL NO. 1090 of 2008 With R/TAX APPEAL NO. 1265 of 2007 With R/TAX APPEAL NO. 128 of 2011 With R/TAX APPEAL NO. 1320 of 2009 With R/TAX APPEAL NO. 1353 of 2010 With R/TAX APPEAL NO. 1462 of 2010 With R/TAX APPEAL NO. 1527 of 2010 With R/TAX APPEAL NO. 1550 of 2007 With R/TAX APPEAL NO. 167 of 2010 With R/TAX APPEAL NO. 1702 of 2008 With R/TAX APPEAL NO. 177 of 2009 With R/TAX APPEAL NO. 182 of 2011 With R/TAX APPEAL NO. 183 of 2010 With R/TAX APPEAL NO. 1844 of 2008 With R/TAX APPEAL NO. 1845 of 2008 With R/TAX APPEAL NO. 18 of 2011 With R/TAX APPEAL NO. 1962 of 2009 With R/TAX APPEAL NO. 1964 of 2009 With R/TAX APPEAL NO. 2455 of 2009 With R/TAX APPEAL NO. 256 of 2009 With Page 1 of 3

C/TAXAP/1420/2007 ORDER R/TAX APPEAL NO. 2669 of 2010 With R/TAX APPEAL NO. 330 of 2010 With R/TAX APPEAL NO. 62 of 2011 With R/TAX APPEAL NO. 63 of 2011 With R/TAX APPEAL NO. 64 of 2011 With R/TAX APPEAL NO. 66 of 2011 With R/TAX APPEAL NO. 678 of 2010 With R/TAX APPEAL NO. 67 of 2011 With R/TAX APPEAL NO. 68 of 2011 With R/TAX APPEAL NO. 723 of 2010 With R/TAX APPEAL NO. 769 of 2010 With R/TAX APPEAL NO. 76 of 2011 With R/TAX APPEAL NO. 77 of 2011 With R/TAX APPEAL NO. 863 of 2010 With R/TAX APPEAL NO. 864 of 2010 ========================================================== THE COMMISSIONER OF INCOME TAX-I Versus SUNILKUMAR B HANDA ========================================================== Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 MRS SWATI SOPARKAR(870) for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI and HONOURABLE MR.JUSTICE B.N. KARIA

Page 2 of 3

C/TAXAP/1420/2007 ORDER Date : 04/09/2018 ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) Learned advocate Ms. Mauna Bhatt, under instructions from the department, sought permission to withdraw these appeals since the 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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