THE COMMISSIONER OF INCOME TAX - I vs. HOEC BARDAHL INDIA LTD.

O/TAXAP/1262/2007 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 1262 of 2007

FOR APPROVAL AND SIGNATURE:

HONOURABLE MR.JUSTICE KS JHAVERI and HONOURABLE MR.JUSTICE K.J.THAKER ================================================================ 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the Constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ================================================================ THE COMMISSIONER OF INCOME TAX - I....Appellant(s) Versus HOEC BARDAHL INDIA LTD.....Opponent(s) ================================================================ Appearance: MR KM PARIKH, ADVOCATE for the Appellant(s) No. 1 MRS SWATI SOPARKAR, ADVOCATE for the Opponent(s) No. 1 ================================================================ CORAM: HONOURABLE MR.JUSTICE KS JHAVERI and HONOURABLE MR.JUSTICE K.J.THAKER

Date : 23/12/2014

ORAL JUDGMENT Page 1 of 3

O/TAXAP/1262/2007 JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. By way of this appeal, the appellant-revenue has challenged the order dated 02.03.2007 passed by the Income-tax Appellate Tribunal, Ahmedabad Bench in ITA No. 2368/Ahd/2006 for the assessment year 2002-03. 2. While admitting this appeal on 24.04.2008, this Court has framed the following substantial question of law: “A. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in confirming the order of the CIT (A) whereby he deleted the adjustment of the provision for doubtful debts under clause (c) of the Explanation below section 115B(2) in the computation of deemed total income u/s.115JB? B. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in making a distinction between the liabilities towards revenue expenses and the liabilities tagged with the assets, in interpreting clause(c) of the Explanation below section 115JB(2), despite both being a charge on the profits and there being nothing in this Explanation to warrant such distinction?” 3. In our view, the amount involved in the present case is a small one and the revenue effect is less than Rs. 1 lakh, and therefore, as per CDBT Instruction No. 1979 dated 27th March, 2000 and 02 of 2005, the revenue ought not to have come in appeal where the total revenue effect is less than Rs. 1 lakh, and therefore, this appeal is not entertained. The questions are answered in favour of the assessee and against the revenue. This appeal is dismissed on the ground of smallness of amount. Liberty to revive in case of difficulty. Page 2 of 3

O/TAXAP/1262/2007 JUDGMENT (K.S.JHAVERI, J.) (K.J.THAKER, J) divya Page 3 of 3