THE PRINCIPAL COMMISSIONER OF INCOME TAX 4 vs. SHREE KRISHNA KESHAV LABORATORIES LIMITED

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TAXAP/130/2019HC GujaratGJHC24019075201907 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 appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated 8th August, 2019. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal was disposed of in accordance with this policy. The Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the assessment year(s) were not recorded in the judgment. No finding was given on the merits of the case.

What were the facts?

The appeal, C/TAXAP/130/2019, was filed by the Principal Commissioner of Income Tax 4 (the Revenue) against Shree Krishna Keshav Laboratories Limited (the assessee). The appeal was before the High Court of Gujarat at Ahmedabad. The judgment was dated 07/01/2022. The appeal was notified for passing an appropriate order due to low tax effect, in line with Circular No. 17/2019 dated 8th August, 2019, issued by the Central Board Direct Taxes. The circular outlines monetary limits for filing appeals. The appeal was disposed of in view of this circular.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect as per Circular No. 17/2019? Assessee's Contention: The assessee did not present any arguments as the appeal was not pressed by the Revenue. The judgment does not record any specific contentions from the assessee. Revenue's Contention: The Revenue submitted that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019 dated 8th August, 2019, which sets monetary limits for appeals before the High Court at Rs. 1,00,00,000. The Revenue relied on this circular as the basis for not pressing the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/130/2019 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 130 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX 4 Versus SHREE KRISHNA KESHAV LABORATORIES LIMITED ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MS VAIBHAVI K PARIKH(3238) 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/130/2019 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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