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

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TAXAP/1231/2018HC GujaratGJHC24061202201807 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 held that the tax appeal was not pressed by the Revenue in view of the low tax effect, considering Circular No. 17/2019. This circular establishes a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The Court disposed of the appeal accordingly. The Revenue was granted liberty to revive the tax appeal in case of any difficulty. No specific findings were made on the merits of the original tax dispute, as the appeal was disposed of on procedural grounds related to the monetary limit prescribed by the CBDT circular.

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 listed for an appropriate order by the High Court of Gujarat. The appeals were notified due to a low tax effect. The Court considered Circular No. 17/2019, dated 8th August 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular provides a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

What were the issues?

1. Whether the present tax appeal is to be dismissed on the grounds of low tax effect, in light of Circular No. 17/2019 issued by the CBDT? (Question of law) Assessee's Contention: The assessee did not file any arguments. The judgment indicates the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue did not press the appeal due to the low tax effect, as per Circular No. 17/2019. The circular specifies 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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