Tax appeal withdrawal order recalled where tax effect exceeded the monetary limit and revival was expressly reserved.

An order permitting withdrawal of a tax appeal was recalled and the appeal restored because the tax effect exceeded the monetary limit in Circular No. 3 of 2018. The record showed that the earlier withdrawal resulted from an error by the applicant, and the withdrawal order had reserved liberty to revive the appeal if the discrepancy later came to light. On that basis, the court held that recall of the earlier order was warranted and the appeal was restored to file.

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Issues: Whether the earlier order permitting withdrawal of the tax appeal was liable to be recalled and the appeal restored to file on the ground that the tax effect was above the monetary limit prescribed by Circular No. 3 of 2018 dated 11.7.2018.

Analysis: The tax effect in the appeal was found to be Rs. 3,08,44,800/-, which was above the monetary limit of Rs. 50,00,000/-. The earlier withdrawal of the appeal had occurred due to an error on the part of the applicant, and the record showed that the order permitting withdrawal had reserved liberty to revive the appeal if such discrepancy came to notice later. In these circumstances, the earlier order warranted recall and the appeal deserved to be restored.

Conclusion: The application was allowed, the earlier order dated 27.11.2018 was recalled, and Tax Appeal No. 308 of 2014 was restored to file.

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