COMMISSIONER OF INCOME TAX I vs. ARVIND LIMITED

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TAXAP/1090/2014HC GujaratGJHC24045197201427 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 Circular No. 17/2019, dated August 8, 2019, which stipulates a monetary limit of Rs. 1,00,000 for appeals before the High Court. The Court observed that the appeal was being disposed of accordingly. The reasoning is based on the administrative policy decision of the Revenue to withdraw appeals below a certain monetary threshold. The ratio decidendi is that appeals with a low tax effect, as defined by subsequent circulars, may not be pursued. The operative direction was to dispose of the appeal, with liberty reserved for the Revenue to revive it if any difficulty arose. No specific issue was left undecided; the appeal was disposed of based on the stated policy.

What were the facts?

The Commissioner of Income Tax I (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Arvind Limited (the assessee). The appeal was notified for an order due to low tax effect. The Revenue stated that the appeal was not pressed in view of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes, which revised monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,000 for appeals before the High Court. The High Court noted that the appeal was disposed of accordingly, reserving liberty for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the Tax Appeal filed by the Revenue is to be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? Assessee's Contention: The judgment does not record any specific contentions made by the assessee. However, the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue contended that the appeal should be disposed of in light of Circular No. 17/2019, dated August 8, 2019, due to the low tax effect. This circular sets a monetary limit of Rs. 1,00,000 for appeals before the High Court. The Revenue indicated that the appeal was not pressed on this basis.

AI-generated summary — verify with the full judgment below

C/TAXAP/1090/2014 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1090 of 2014 ========================================================== COMMISSIONER OF INCOME TAX I Versus ARVIND LIMITED ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR VIJAY S RANJAN(6126) for the Opponent(s) No. 1 RULE SERVED(64) 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/1090/2014 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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