THE PRINCIPAL COMMISSIONER OF INCOME TAX 4 vs. M/S VARDHMAN STAMPING PVT LTD

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TAXAP/109/2019HC GujaratGJHC24016983201907 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The Court noted the monetary limits specified in the circular for appeals before different authorities, including 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. No specific finding was made on the merits of the original tax dispute.

What were the facts?

The Principal Commissioner of Income Tax -4 (Revenue) filed this tax appeal against Vardhman Stampings Pvt. Ltd. (Assessee). The appeal was notified for an appropriate order due to low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular sets monetary limits for filing appeals. The appeal was listed for disposal based on this circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per CBDT Circular No. 17/2019? (Question of law and fact) Assessee's Contention: The assessee did not file any specific arguments in the provided text. However, the appeal was not pressed by the Revenue due to low tax effect, implying the assessee would benefit from this stance. Revenue's Contention: The Revenue argued that the appeal should be disposed of in accordance with Circular No. 17/2019, which specifies monetary limits for appeals. The appeal was not pressed due to the low tax effect falling below the threshold stipulated in the circular for High Court appeals (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/975/2017 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 975 of 2017 With R/TAX APPEAL NO. 109 of 2019 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX -4 Versus VARDHMAN STAMPINGS PVT. LTD. ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) for the Opponent(s) No. 1 SERVED BY AFFIX. (R)(67) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

COMMON 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 8 th 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 8 th 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 Page 1 of 2

C/TAXAP/975/2017 ORDER DATED: 07/01/2022 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. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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