THE PRINCIPAL COMMISSIONER OF INCOME TAX-2 vs. GMM PFAUDLER LIMITED

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TAXAP/596/2019HC GujaratGJHC24054550201909 September 2019Author: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the Tax Appeal is not pressed by the learned counsel for the revenue. This decision is in line with Circular No. 17/2019, which specifies monetary limits for filing appeals. The circular indicates that appeals with a tax effect below Rs. 1,00,00,000 before the High Court are generally not to be pressed. Consequently, the High Court disposed of the Tax Appeal as not pressed. No specific findings on the merits of the original dispute before the ITAT were made, as the appeal was withdrawn by the appellant.

What were the facts?

This is a Tax Appeal filed by the Revenue (The Principal Commissioner of Income Tax-2) against an order of the Income Tax Appellate Tribunal (ITAT). The assessee is GMM Pfaudler Limited. The appeal is filed under Section 260A of the Income Tax Act, 1961. The learned counsel for the revenue stated that the appeal is not pressed. This decision is based on Circular No. 17/2019, dated 8th August, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The appeal is disposed of as not pressed.

What were the issues?

The primary issue is whether the appeal filed by the Revenue should be entertained. The Revenue's contention is that the appeal is not pressed due to a low tax effect, as per the revised monetary limits stipulated in Circular No. 17/2019. The judgment does not record any specific arguments from the assessee. The question before the High Court is whether to proceed with the appeal given the Revenue's stance and the circular.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

C/TAXAP/596/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 596 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX-2 Versus GMM PFAUDLER LIMITED ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO Date : 09/09/2019

ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA)

1.00.

This Tax Appeal under Section 260A of the Income Tax Act, 1961 (for short ‘The Act, 1961’) is at the instance of the Revenue.

2.00.

This Tax Appeal is not pressed by the learned counsel for the revenue in view of the low tax effect having regard to the Circular No.17/2019, dated 8th August, 2019 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board Direct Taxes, New Delhi. C/TAXAP/596/2019 ORDER

3.00.

According to the new policy as reflected from the Circular referred to above, the table for monetary limits is as follows : Sr. No. Appeals/SLPs in Income-tax matters Monetary Limit (in Rs.) 1 Before Appellate Tribunal 0,50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000

4.00.

In view of the aforesaid, this Tax Appeal is disposed of as not pressed. (J. B. PARDIWALA, J) (A. C. RAO, J) RAFIK..

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