COMMISSIONER OF INCOME TAX-II vs. M/S KUMAR CELLULAR

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TAXAP/1058/2011HC GujaratGJHC24045313201127 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the tax appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The circular establishes a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal was disposed of accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the substantive grounds of appeal were not decided on merits.

What were the facts?

The Gujarat High Court was considering a tax appeal filed by the Commissioner of Income Tax-II against M/s Kumar Cellular. The appeal was notified for an appropriate order due to a low tax effect. The court referred to Circular No. 17/2019, dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, which outlines monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The appeal was not pressed by the Revenue in light of this circular.

What were the issues?

1. Whether the tax appeal should be dismissed due to a low tax effect, as per Circular No. 17/2019? Assessee's contention: The assessee did not present any arguments as the appeal was not pressed by the Revenue. Revenue's contention: The Revenue argued that the appeal should be disposed of in view of the low tax effect, citing Circular No. 17/2019, which sets monetary limits for appeals before the High Court at Rs. 1,00,00,000. The appeal was not pressed on this basis.

AI-generated summary — verify with the full judgment below

C/TAXAP/1058/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1058 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-II Versus M/S KUMAR CELLULAR ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA

Date : 27/01/2020

ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 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. 3. According to the new policy as reflected from the Circular referred to above, the table for monetary limits is as follows: Page 1 of 2

C/TAXAP/1058/2011 ORDER Sr. No. Appeals/SLPs in Incometax 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. (J. B. PARDIWALA, J) (BHARGAV D. KARIA, J) aruna Page 2 of 2

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