COMMISSIONER OF INCOME TAX II vs. MEGHMANI ORGANICS LTD.

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TAXAP/1067/2014HC GujaratGJHC24045181201427 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 in view of the low tax effect, having regard to Circular No. 17/2019. The Court noted the monetary limit for appeals before the High Court as Rs. 1,00,000 as per the circular. Consequently, the appeal was disposed of accordingly. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the original assessment year(s) were not recorded in the judgment.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax II (the Revenue) against Meghmani Organics Ltd. (the Assessee). The appeal was listed for an appropriate order by the Registry. The appeal was notified due to its low tax effect. The Court was to consider 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. The circular outlines monetary limits for filing appeals before various authorities, including the High Court, which is set at Rs. 1,00,000.

What were the issues?

1. Whether the Tax Appeal should be dismissed due to low tax effect in light of Circular No. 17/2019? (Question of law and fact, turning on the interpretation and application of Circular No. 17/2019). Assessee's Contention: The Assessee did not explicitly argue any points as the appeal was not pressed. However, the context implies the Assessee would benefit from the dismissal based on the low tax effect. Revenue's Contention: The Revenue, through its counsel, did not press the appeal, citing the low tax effect in accordance with Circular No. 17/2019. The Revenue relied on Circular No. 17/2019.

AI-generated summary — verify with the full judgment below

C/TAXAP/1067/2014 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1067 of 2014 ========================================================== COMMISSIONER OF INCOME TAX II Versus MEGHMANI ORGANICS LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) 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/1067/2014 ORDER Sr. No. Appeals/SLPs in Incometax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,000 3 Before Supreme Court 2,00,000 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) CHANDRESH Page 2 of 2

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