COMMISSIONER OF INCOME TAX-II vs. ELECTRO FERRO ALLOYS (P) LTD

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TAXAP/1283/2011HC GujaratGJHC24045413201131 July 2020Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH,HONOURABLE MR. JUSTICE J.B.PARDIWALA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The reasoning was based on the updated policy reflected in the circular, which establishes monetary limits for appeals. Specifically, for appeals before the High Court, the monetary limit is Rs. 1,00,00,000. Since the tax effect of the present appeal was low, it fell within the scope of the circular for non-prosecution. The operative direction was to dispose of the appeal accordingly. The Court reserved liberty for the Revenue to revive the appeal in case of any difficulty.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax-II (the Revenue) against Electro Ferro Alloys (P) Ltd (the assessee). The appeal was listed for an appropriate order by the High Court of Gujarat. The appeal was notified due to its low tax effect. The Court considered Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which outlines monetary limits for filing appeals. The appeal was ultimately disposed of in light of this circular and the low tax effect.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, in accordance with Circular No. 17/2019? (Question of law and fact) The Revenue argued that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The assessee's specific arguments are not recorded in the judgment. The circular sets monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/1283/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1283 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-II Versus ELECTRO FERRO ALLOYS (P) LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MRS SWATI SOPARKAR(870) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA

Date : 31/07/2020

ORAL ORDER (PER : HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH) 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 8th 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 8th August, 2019 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board Direct Taxes, New Delhi. Page 1 of 2

C/TAXAP/1283/2011 ORDER 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. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) ALI ISTAYAK Page 2 of 2

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