COMMISSIONER OF INCOME TAX-IV, vs. VADILAL ENTERPRISES LTD. VADILAL HOUSE,

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TAXAP/1089/2008HC GujaratGJHC24041281200810 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 of Gujarat decided to dispose of the Tax Appeal. The primary reason for this decision was the Revenue's statement that the appeal was not pressed due to a low tax effect, as per Circular No. 17/2019. The Court acknowledged the circular's provisions, which establish monetary limits for appeals. Specifically, appeals before the High Court have a monetary limit of Rs. 1,00,00,000. The Court found that the tax effect in this particular appeal was below this threshold. Therefore, 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. No specific issue regarding the merits of the original assessment or the prior appellate orders was decided.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax-IV (the Revenue) against Vadilal Enterprises Ltd. (the assessee). The appeal was listed for an appropriate order by the Registry. The appeal was brought to the High Court of Gujarat at Ahmedabad. The judgment notes that the appeal was notified due to a low tax effect. The appeal is being disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals.

What were the issues?

1. Whether the appeal should be disposed of due to a low tax effect, in accordance with Circular No. 17/2019? (Question of law) Assessee's Contention: The judgment does not record any specific contentions made by the assessee. However, the appeal's disposal is based on the Revenue's decision not to press it. Revenue's Contention: The Revenue, through its counsel, stated that the appeal is not pressed in view of the low tax effect, referencing Circular No. 17/2019. The circular provides monetary limits for appeals before various authorities, including the High Court (Rs. 1,00,00,000). The Revenue implicitly argues that the tax effect in this appeal falls below the prescribed limit, justifying its withdrawal.

AI-generated summary — verify with the full judgment below

C/TAXAP/1089/2008 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1089 of 2008 ========================================================== COMMISSIONER OF INCOME TAX-IV, Versus VADILAL ENTERPRISES LTD. VADILAL HOUSE, ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MRS SWATI SOPARKAR(870) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA

Date : 10/01/2020

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. Page 1 of 2

C/TAXAP/1089/2008 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/SLP 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. (J. B. PARDIWALA, J) (BHARGAV D. KARIA, J) GIRISH Page 2 of 2

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