COMMISSIONER OF INCOME TAX I vs. ARVIND MILLS LTD

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TAXAP/1109/2013HC GujaratGJHC24043613201327 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 appeal should be disposed of in view of the low tax effect, as per Circular No. 17/2019. The reasoning was based on the Revenue's decision not to press the appeal in light of the new policy outlined in the circular. The circular specifies a monetary limit of Rs. 1,00,000 for appeals before the High Court. The ratio decidendi is that appeals with a tax effect below the prescribed monetary limits, as per the prevailing circulars, are to be withdrawn or not pressed. The operative direction was to dispose of the appeal accordingly. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax I (the Revenue) against Arvind Mills Ltd (the assessee). The appeal was listed 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 outlines revised monetary limits for filing appeals. The High Court noted the new policy and disposed of the appeal accordingly, reserving liberty for the Revenue to revive it if any difficulty arose.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's contention: The assessee did not make any arguments as the appeal was not pressed by the Revenue. Revenue's contention: The Revenue argued that the appeal should be disposed of in view of the low tax effect, citing Circular No. 17/2019, dated August 8, 2019. The circular establishes monetary limits for appeals before various authorities, including the High Court, where the limit is Rs. 1,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/1109/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1109 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/1109/2013 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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