COMMISSIONER OF INCOME TAX -II vs. MADHUSUDAN INDUSTRIES LTD

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TAXAP/1131/2014HC GujaratGJHC24045208201407 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The reasoning was based on the policy reflected in the said Circular, which establishes monetary limits for appeals. Specifically, for appeals before the High Court, the monetary limit is Rs. 1,00,00,000. Since the appeal had a low tax effect, it was disposed of accordingly. The Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. 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 - II (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against an order concerning Madhusudan Industries Ltd (Assessee). 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 8th August 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The appeal was listed for hearing on 07/01/2022.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, in light of Circular No. 17/2019? (Question of law) The Revenue argued that the appeal was not pressed due to the low tax effect, as per Circular No. 17/2019. The Assessee's arguments are not recorded in the judgment. The Circular specifies monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/1131/2014 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1131 of 2014 ========================================================== COMMISSIONER OF INCOME TAX -II Versus MADHUSUDAN INDUSTRIES LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

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 referred to above, the table for monetary limits is as follows:- Page 1 of 2

C/TAXAP/1131/2014 ORDER DATED: 07/01/2022 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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