COMMISSIONER OF INCOME TAX-III vs. MEGHMANI DYES & INTERMEDIATES

PDF · subscribers
TAXAP/1034/2009HC GujaratGJHC24040953200914 September 2022Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR,HONOURABLE MR. JUSTICE ASHUTOSH SHASTRI2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal would not survive for consideration due to the low tax effect, as prescribed under the extant Circulars/Notifications issued by the Central Board of Direct Taxes (CBDT), specifically Circular No. 17 of 19 dated 08.08.2019. Consequently, the appeal was disposed of on the ground of low tax effect. However, the court made it clear that the question of law raised in the appeal remains open. The parties were granted liberty to seek revival of the appeal if it falls under any exception carved out in the said circulars, by filing an appropriate note in the Registry. The court did not decide the substantial question of law on merits.

What were the facts?

The appeal was filed by the Commissioner of Income Tax-III against an order of the Income Tax Appellate Tribunal. The assessee is Meghmani Dyes & Intermediates. The Assessing Officer had passed an order and issued a consequential demand. The judgment does not specify the assessment year(s) or the specific amount in dispute. The procedural history indicates that the appeal reached the High Court after an order from the Income Tax Appellate Tribunal. The current proceedings are before the High Court of Gujarat.

What were the issues?

1. Whether the appeal involves a substantial question of law as to the interpretation of the Constitution of India or any order made thereunder? (Question of law) 2. Whether the appeal survives for consideration in light of the low tax effect prescribed under extant CBDT Circulars/Notifications? Assessee's Contentions: The judgment does not record any specific contentions made by the assessee. The appeal is filed by the Revenue, and the assessee is the opponent. Revenue's Contentions: The revenue, through its counsel, submitted that the tax effect of the order is less than the monetary limit fixed under extant Circulars/Notifications issued by the CBDT, specifically mentioning Circular No. 17 of 19 dated 08.08.2019. This implies the revenue argued that the appeal should not be entertained due to the low tax effect.

AI-generated summary — verify with the full judgment below

C/TAXAP/1034/2009 JUDGMENT DATED: 14/09/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1034 of 2009

FOR APPROVAL AND SIGNATURE:

HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR and HONOURABLE MR. JUSTICE ASHUTOSH J. SHASTRI ============================================= 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the Constitution of India or any order made thereunder ? ============================================= COMMISSIONER OF INCOME TAX-III Versus MEGHMANI DYES & INTERMEDIATES ============================================= Appearance: MR NITIN K MEHTA(3286) for the Appellant(s) No. 1 MRS SWATI SOPARKAR(870) for the Opponent(s) No. 1 ============================================= CORAM:HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR and HONOURABLE MR. JUSTICE ASHUTOSH J. SHASTRI

Date : 14/09/2022

ORAL JUDGMENT (PER : HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR) 1. This appeal by the assessee is directed against the order of the Income Tax Appellate Tribunal. The order passed by the Page 1 of 2

C/TAXAP/1034/2009 JUDGMENT DATED: 14/09/2022 Assessing Officer and the consequential demand, notice issued thereunder would indicate that the tax effect is less than the monetary limit fixed under extant Circulars/Notifications issued by the Central Board of Direct Taxes (CBDT), by virtue of which the appeal would not survive for consideration in light of the low effect of tax prescribed under the said Notifications namely Circular No. 17 of 19 dated 08.08.2019. Hence, appeal stands disposed of as having low tax effect and keeping open the question of law raised in the appeal. However, it is made clear that in the event of this appeal falling under the category of any exception carved out under the said extant Circulars, either of the parties would be at liberty to seek for revival of this appeal by filing appropriate note in the Registry. (ARAVIND KUMAR,CJ) (ASHUTOSH J. SHASTRI, J) phalguni Page 2 of 2

Recent GST High Court judgments

Search GST case law →