COMMISSIONER OF INCOME TAX I vs. ARVIND MILLS LTD

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TAXAP/1106/2013HC GujaratGJHC24043610201327 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 at Ahmedabad decided to dispose of the Tax Appeal filed by the Commissioner of Income Tax I against Arvind Mills Ltd. The decision was based on Circular No. 17/2019, dated August 8, 2019, which stipulates monetary limits for filing appeals. The appeal was not pressed by the Revenue due to the low tax effect, as per the revised policy. The Court disposed of the appeal 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 assessment was decided.

What were the facts?

The Commissioner of Income Tax I (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Arvind Mills Ltd (Assessee). The appeal was notified for an appropriate order due to low tax effect. The appeal was to be disposed of in accordance with Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals. The appeal was listed for an order based on these new policy guidelines.

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 assessee implicitly relies on the Circular No. 17/2019, which sets monetary limits for appeals. The appeal is not pressed by the Revenue in view of the low tax effect, aligning with the policy outlined in the circular. Revenue's Contention: The Revenue has not pressed the appeal, citing the low tax effect as per Circular No. 17/2019. The judgment indicates the appeal is disposed of in view of the aforesaid circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/1106/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1106 of 2013 ========================================================== COMMISSIONER OF INCOME TAX I Versus ARVIND MILLS LTD ========================================================== 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 : 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/1106/2013 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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