DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION) vs. JOINT STOCK COMPANY ZANGAS

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TAXAP/115/2012HC GujaratGJHC24042760201224 December 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE ILESH J. VORA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal was not pressed by the appellant (Revenue) in view of the low tax effect, having regard to Circular No. 17/2019 dated August 8, 2019. The circular establishes monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. Consequently, the appeal was disposed of accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the merits of the original dispute were not decided.

What were the facts?

The appeal was filed by the Director of Income Tax (International Taxation) against Joint Stock Company Zangas. The appeal was listed for an order due to low tax effect. The Gujarat High Court noted that the appeal was not pressed by the appellant in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The court referred to the table within the circular, which specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The appeal was disposed of based on this circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, considering Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not explicitly argue on this point in the provided text. However, the appeal was not pressed by the appellant (Revenue) in view of the low tax effect and the aforementioned circular. Revenue's Contention: The Revenue did not press the appeal due to the low tax effect, as per Circular No. 17/2019, which sets monetary limits for appeals. The appeal was notified for disposal keeping this circular in mind.

AI-generated summary — verify with the full judgment below

C/TAXAP/115/2012 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 115 of 2012 ========================================================== DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION) Versus JOINT STOCK COMPANY ZANGAS ========================================================== Appearance: MR.VARUN K.PATEL(3802) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) for the Opponent(s) No. 1 MR NITIN K MEHTA(3286) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE ILESH J. VORA

Date : 24/12/2020

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 8thAugust, 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/115/2012 ORDER Sr. No. Appeals/SLPs in Incometax 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) (ILESH J. VORA,J) A. B. VAGHELA / chandresh Page 2 of 2

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