COMMISSIONER OF INCOME TAX (TDS) vs. NATIONAL AGRICULTURE COOPERATIVE MARKETING FEDERATION

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TAXAP/120/2012HC GujaratGJHC24042765201227 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 accordance with Circular No. 17/2019, dated August 8, 2019, due to the low tax effect. The circular establishes monetary limits for appeals, with a limit of Rs. 1,00,00,000 for appeals before the High Court. Since the tax effect in this case was below this threshold, the appeal was not pressed by the Revenue. The Court disposed of the tax appeal accordingly. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the entire appeal was disposed of based on the circular.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (TDS) against the National Agriculture Cooperative Marketing Federation. The appeal was listed for an order due to a low tax effect. The appellant sought to dispose of 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 table provided in the circular indicates that appeals before the High Court have a monetary limit of Rs. 1,00,00,000. The judgment does not specify the assessment year(s) or the specific order/action under challenge, nor the amount in dispute.

What were the issues?

1. Whether the appeal should be disposed of in view of the low tax effect as per Circular No. 17/2019, dated August 8, 2019? (Question of law) Assessee's Contention: The assessee (National Agriculture Cooperative Marketing Federation) did not explicitly argue any points as the appeal was not pressed by the Revenue. The appeal was withdrawn by the Revenue due to the low tax effect, referencing Circular No. 17/2019. Revenue's Contention: The Revenue (Commissioner of Income Tax (TDS)) contended that the appeal should be disposed of in light of Circular No. 17/2019, which sets monetary limits for appeals. The appeal was not pressed due to the low tax effect, which fell below the threshold stipulated in the circular for appeals before the High Court (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/120/2012 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 120 of 2012 ========================================================== COMMISSIONER OF INCOME TAX (TDS) Versus NATIONAL AGRICULTURE COOPERATIVE MARKETING FEDERATION ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR UDAYAN P VYAS(1302) 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/120/2012 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) (BHARGAV D. KARIA, J) aruna Page 2 of 2

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