PRINCIPAL COMMISSIONER OF INCOME TAX - 4 vs. M/S TORRENT PRIVATE LIMITED

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TAXAP/1229/2018HC GujaratGJHC24061195201807 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted that the appeals were notified due to low tax effect and were to be disposed of in accordance with Circular No. 17/2019. The Revenue explicitly stated that the tax appeal was not pressed in view of the low tax effect, referencing the monetary limits prescribed in the aforementioned circular. The circular stipulates a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the High Court disposed of the appeal accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific findings were made on the merits of the original dispute.

What were the facts?

The Principal Commissioner of Income Tax - 4 (Revenue) filed several tax appeals against M/s Torrent Private Limited (Assessee). These appeals were notified for the purpose of passing an appropriate order due to low tax effect. The appeals were to be disposed of in light of Circular No. 17/2019, dated 8th August, 2019, issued by the Central Board Direct Taxes. This circular provides monetary limits for filing appeals before various authorities. The appeals were listed for hearing on 07/01/2022.

What were the issues?

1. Whether the present tax appeal is to be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not make any specific arguments as the appeal was not pressed by the Revenue. The judgment does not record any specific arguments from the assessee's side. Revenue's Contention: The Revenue stated that the tax appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019, dated 8th August, 2019. The circular sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/1228/2018 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1228 of 2018 With R/TAX APPEAL NO. 1226 of 2018 With R/TAX APPEAL NO. 1227 of 2018 With R/TAX APPEAL NO. 1229 of 2018 With R/TAX APPEAL NO. 1231 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX - 4 Versus M/S TORRENT PRIVATE LIMITED ========================================================== 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

COMMON 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 Page 1 of 2

C/TAXAP/1228/2018 ORDER DATED: 07/01/2022 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:- 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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