THE INCOME TAX OFFICER vs. KANSAI TEXO TUBE PRIVATE LIMITED

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TAXAP/70/2008HC GujaratGJHC24041189200817 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 reasoning was based on the Revenue's submission that the tax effect in these appeals fell below the minimum threshold limit prescribed by the CBDT in its circular dated 11.07.2018. This circular empowers the department to withdraw or not pursue appeals where the tax effect is below a certain amount. Therefore, the Court found no impediment in allowing the withdrawal. The appeals were disposed of accordingly. No specific issue was decided on merits, and no ratio decidendi for future cases was established as the appeals were withdrawn.

What were the facts?

The appeals were filed by the Income Tax Officer (Revenue) against Kansai Texo Tube Private Limited (Assessee). A consolidated order was passed by the High Court of Gujarat at Ahmedabad, addressing numerous Tax Appeals. 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 stipulated by the CBDT in its circular dated 11.07.2018, which governs the department's ability to prefer and maintain appeals before the High Court. The appeals were disposed of based on this request.

What were the issues?

1. Whether the Revenue is permitted to withdraw the appeals on the ground that the tax effect is below the CBDT's prescribed threshold limit for maintaining appeals before the High Court? Assessee's Contentions: The Assessee did not present any arguments as the Revenue sought to withdraw the appeals. The judgment does not record any specific contentions from the Assessee's side regarding the withdrawal request. 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 in these appeals was below the minimum threshold limit set by the CBDT in its circular dated 11.07.2018. This circular provides guidelines for the department regarding the monetary limits for filing and pursuing appeals before higher judicial forums, including the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/70/2008 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 70 of 2008 With R/TAX APPEAL NO. 101 of 2011 With R/TAX APPEAL NO. 1029 of 2011 With R/TAX APPEAL NO. 1167 of 2011 With R/TAX APPEAL NO. 1169 of 2011 With R/TAX APPEAL NO. 1195 of 2010 With R/TAX APPEAL NO. 1196 of 2010 With R/TAX APPEAL NO. 1197 of 2010 With R/TAX APPEAL NO. 1374 of 2009 With R/TAX APPEAL NO. 1436 of 2009 With R/TAX APPEAL NO. 1491 of 2010 With R/TAX APPEAL NO. 1534 of 2010 With R/TAX APPEAL NO. 1558 of 2009 With R/TAX APPEAL NO. 1598 of 2008 With R/TAX APPEAL NO. 1599 of 2008 With R/TAX APPEAL NO. 16 of 2011 With R/TAX APPEAL NO. 1819 of 2010 With R/TAX APPEAL NO. 1866 of 2010 With R/TAX APPEAL NO. 1927 of 2010 With R/TAX APPEAL NO. 2028 of 2009 With R/TAX APPEAL NO. 2029 of 2009 With R/TAX APPEAL NO. 2030 of 2010 Page 1 of 3

C/TAXAP/70/2008 ORDER With R/TAX APPEAL NO. 218 of 2011 With R/TAX APPEAL NO. 2348 of 2010 With R/TAX APPEAL NO. 242 of 2011 With R/TAX APPEAL NO. 431 of 2011 With R/TAX APPEAL NO. 444 of 2011 With R/TAX APPEAL NO. 541 of 2011 With R/TAX APPEAL NO. 613 of 2011 With R/TAX APPEAL NO. 614 of 2011 With R/TAX APPEAL NO. 732 of 2010 With R/TAX APPEAL NO. 845 of 2009 With R/TAX APPEAL NO. 863 of 2011 With R/TAX APPEAL NO. 871 of 2011 With R/TAX APPEAL NO. 873 of 2011 With R/TAX APPEAL NO. 944 of 2009 With R/TAX APPEAL NO. 988 of 2011 With R/TAX APPEAL NO. 989 of 2011 With R/TAX APPEAL NO. 990 of 2011 With R/TAX APPEAL NO. 991 of 2011 With R/TAX APPEAL NO. 992 of 2011 With R/TAX APPEAL NO. 993 of 2011 With R/TAX APPEAL NO. 994 of 2011 ========================================================== THE INCOME TAX OFFICER Versus Page 2 of 3

C/TAXAP/70/2008 ORDER KANSAI TEXO TUBE PRIVATE LIMITED ========================================================== Appearance: MRS KALPANAK RAVAL(1046) for the PETITIONER(s) No. 1 MR RK PATEL(1082) for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI and HONOURABLE MR.JUSTICE B.N. KARIA

Date : 17/09/2018

COMMON ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) Learned advocate Mrs.Kalpana K. Raval, 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) ANKIT SHAH Page 3 of 3

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