COMMISSIONER OF INCOME TAX I vs. ARVIND MILLS LTD

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TAXAP/1111/2013HC GujaratGJHC24043615201331 July 2020Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH,HONOURABLE MR. JUSTICE J.B.PARDIWALA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court decided to dispose of the tax appeal. The reasoning was based on Circular No. 17/2019, which sets monetary limits for appeals. The circular indicates that appeals before the High Court should have a monetary limit of Rs. 1,00,00,000. Since the present appeal was considered to have a low tax effect, it was disposed of in accordance with this policy. The Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific finding on the merits of the original dispute is not addressed as the appeal was not pressed.

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 filed before the High Court of Gujarat at Ahmedabad. The appeal was notified for passing an appropriate order due to its low tax effect. The High Court referred to Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which outlines monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

What were the issues?

1. Whether the appeal should be disposed of in light of Circular No. 17/2019 due to low tax effect? The Revenue argued that the appeal was not pressed in view of the low tax effect, as per Circular No. 17/2019. The assessee's contentions are not recorded in the judgment. The judgment does not explicitly state the specific grounds of appeal or the amount in dispute, other than referring to the 'low tax effect' in relation to the circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/1111/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1111 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 RULE SERVED(64) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA

Date : 31/07/2020

ORAL ORDER (PER : HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH) 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/1111/2013 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/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. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) ALI ISTAYAK Page 2 of 2

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