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

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TAXAP/1230/2018HC GujaratGJHC24061201201807 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 captioned appeal was notified for passing an appropriate order due to low tax effect, in accordance with Circular No. 17/2019 dated 8th August, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. The Court observed that the appeal was not pressed in view of the low tax effect, as per the new policy reflected in the said circular. The circular provides monetary limits for appeals before various authorities, including the High Court. Consequently, the appeal was disposed of accordingly. 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 before the ITAT is not discussed or decided by the High Court.

What were the facts?

The Principal Commissioner of Income Tax - 4 (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against M/s Torrent Private Limited (Assessee). The appeal was notified for passing an appropriate order due to low tax effect. The appeal was filed against an order of the Income Tax Appellate Tribunal (ITAT). The judgment does not specify the assessment year(s) or the amount in dispute. The procedural history leading to this appeal before the High Court is not detailed.

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 issued by the CBDT? The Revenue argued that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The Assessee's arguments are not recorded in the judgment. The judgment does not explicitly state the specific issue decided by the ITAT, but the appeal before the High Court is based on the monetary limits prescribed by the CBDT circular for filing appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/1230/2018 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1230 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

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/1230/2018 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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