COMMISSIONER OF INCOME TAX CENTRAL-II vs. VINNY OVERSEAS PVT LTD

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TAXAP/1037/2011HC GujaratGJHC24045299201131 July 2020Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH,HONOURABLE MR. JUSTICE J.B.PARDIWALA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court decided to dispose of the Tax Appeal in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The Court noted the policy reflected in the circular, which sets monetary limits for appeals before various authorities, including the High Court at Rs. 1,00,00,000. Since the appeal was not pressed by the Revenue on the ground of low tax effect, it was disposed of accordingly. The Court reserved liberty for the Revenue to revive the appeal in case of any difficulty. No specific findings on the merits of the original assessment or the order under challenge were made, as the appeal was decided on procedural grounds related to the appeal policy.

What were the facts?

The Commissioner of Income Tax Central-II (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad. The appeal was against an order concerning Vinny Overseas Pvt Ltd (the Assessee). The appeal was notified for an appropriate order due to its low tax effect. The High Court considered Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The appeal was listed for disposal in light of this circular.

What were the issues?

1. Whether the Tax Appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law and procedure). The Revenue's contention was that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The judgment does not record any specific arguments from the Assessee regarding the merits of the case, but their presence as the opponent is noted. The core issue revolves around the application of the CBDT's policy on monetary limits for appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/1037/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1037 of 2011 ========================================================== COMMISSIONER OF INCOME TAX CENTRAL-II Versus VINNY OVERSEAS PVT LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR NITIN K MEHTA(3286) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA

Date : 31/07/2020

ORAL ORDER (PER : HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH) 1. The Registry has notified the appeal for the purpose of passing an appropriate order. The captioned appeal has been notified because of the low tax effect. The appeal is to be disposed of keeping in mind 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. 2. This tax appeal is not pressed 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. Page 1 of 2

C/TAXAP/1037/2011 ORDER 3. 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 (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000 4. In view of the aforesaid, the appeal is disposed of accordingly. In case of any difficulty, we reserve the liberty for the Revenue to revive the tax appeal. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) ALI ISTAYAK Page 2 of 2

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