PRINCIPAL COMMISSIONER OF INCOME TAX-1 vs. WOCO MOTHERSON ADVANCED RUBBER TECHNOLOGIES LIMITED

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TAXAP/126/2017HC GujaratGJHC24056799201707 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 appeal was notified for passing an appropriate order due to low tax effect, in line with Circular No. 17/2019. The Revenue stated that the appeal was not pressed in view of the low tax effect, referencing the aforementioned circular. The circular provides monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. Consequently, the High Court disposed of the appeal accordingly. The court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-1 (Revenue) against Woco Motherson Advanced Rubber Technologies Limited (Assessee). The appeal was listed for passing an appropriate order due to low tax effect. The Revenue decided not to press the appeal in light of 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 specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, considering the CBDT Circular No. 17/2019. The Revenue argued that the appeal is not pressed in view of the low tax effect, as per Circular No. 17/2019. The Assessee's arguments are not recorded as the appeal was disposed of on the Revenue's submission.

AI-generated summary — verify with the full judgment below

C/TAXAP/126/2017 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 126 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-1 Versus WOCO MOTHERSON ADVANCED RUBBER TECHNOLOGIES LIMITED ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 RULE SERVED(64) 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/126/2017 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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