COMMISSIONER OF INCOME TAX - III vs. M/S PRABHUDAS KISHORDAS TOBACCO PRODUCTS PVT LTD

PDF · subscribers
TAXAP/130/2010HC GujaratGJHC24046014201031 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 High Court noted that the appeal was not pressed by the Revenue due to the low tax effect, referencing Circular No. 17/2019. This circular establishes monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. In view of this policy and the low tax effect of the present appeal, the Court disposed of the appeal accordingly. The Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute, as the appeal was decided on procedural grounds related to the tax effect policy.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax - III against M/s. Prabhudas Kishordas Tobacco Products Pvt. Ltd. The appeal was listed for an appropriate order by the Registry. The appeal was brought to the attention due to its low tax effect. The Court was to consider Circular No. 17/2019, dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, New Delhi, which outlines monetary limits for filing appeals.

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? Assessee's Contention: The assessee did not explicitly argue, but the appeal was not pressed by the Revenue due to low tax effect, implying acceptance of the circular's applicability. Revenue's Contention: The appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019, dated August 8, 2019. The circular specifies monetary limits for appeals before various authorities, including the High Court (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/130/2010 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 130 of 2010 ========================================================== COMMISSIONER OF INCOME TAX - III Versus M/S PRABHUDAS KISHORDAS TOBACCO PRODUCTS PVT 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/130/2010 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

Latest GST High Court judgments

Search GST case law →