COMMISSIONER OF INCOME TAX-I vs. GROWTH AVENUES LTD

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TAXAP/1334/2011HC GujaratGJHC24045441201117 September 2018Bench: HONOURABLE MR. JUSTICE AKIL KURESHI,HONOURABLE MR. JUSTICE B.N. KARIA3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Gujarat held that the tax effect involved in all the appeals filed by the Revenue was below the minimum threshold prescribed by the CBDT in its circular dated 11.7.2018. This circular specifies the monetary limits for the Revenue to maintain appeals before the High Court. Consequently, the Court found that the Revenue was not entitled to maintain these appeals. The appeals were therefore dismissed solely on this procedural ground, without delving into the merits of the substantive tax issues. The ratio decidendi is that appeals filed by the Revenue that do not meet the minimum tax effect threshold stipulated by the CBDT circulars are liable to be dismissed on that basis. The operative direction was to dismiss the Tax Appeals.

What were the facts?

The appeals were filed by the Revenue (Commissioner of Income Tax-I) against the assessee, Anupam Silk Mills Private Ltd. The appeals pertain to various assessment years, though not explicitly stated in the provided text. The core of the matter is that the Revenue is challenging an order or action, the specifics of which are not detailed. The procedural history involves multiple tax appeals filed before the High Court of Gujarat. The judgment states that the tax effect in these appeals filed by the Revenue is below the minimum threshold prescribed by the CBDT in its circular dated 11.7.2018 for maintaining appeals before the High Court.

What were the issues?

1. Whether the tax effect involved in the appeals filed by the Revenue is below the minimum threshold prescribed by the CBDT circular dated 11.7.2018, thereby precluding the Revenue from maintaining these appeals before the High Court? Assessee's Contentions: The judgment does not record any specific contentions made by the assessee. However, the fact that the appeals were dismissed on the ground of low tax effect implies that the assessee likely raised this point or it was a matter of record considered by the court. Revenue's Contentions: The Revenue's primary contention, implicitly, would be that the appeals should be heard on merits. However, the judgment focuses on the procedural aspect of the tax effect. The Revenue's argument, if any, regarding the tax effect or the applicability of the CBDT circular is not recorded. The judgment states that the Revenue was informed about the low tax effect, suggesting this was a point brought to their attention.

AI-generated summary — verify with the full judgment below

C/TAXAP/1331/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1331 of 2011 With R/TAX APPEAL NO. 1333 of 2011 With R/TAX APPEAL NO. 1334 of 2011 With R/TAX APPEAL NO. 1360 of 2011 With R/TAX APPEAL NO. 1420 of 2011 With R/TAX APPEAL NO. 1430 of 2011 With R/TAX APPEAL NO. 50 of 2012 With R/TAX APPEAL NO. 89 of 2012 With R/TAX APPEAL NO. 456 of 2012 With R/TAX APPEAL NO.457 of 2012 With R/TAX APPEAL NO. 458 of 2012 With R/TAX APPEAL NO. 530 of 2012 With R/TAX APPEAL NO. 538 of 2012 With R/TAX APPEAL NO. 541 of 2012 With R/TAX APPEAL NO. 640 of 2012 With R/TAX APPEAL NO. 642 of 2012 With R/TAX APPEAL NO. 679 of 2012 With R/TAX APPEAL NO. 744 of 2012 With R/TAX APPEAL NO. 745 of 2012 With R/TAX APPEAL NO. 746 of 2012 With R/TAX APPEAL NO. 826 of 2012 With Page 1 of 3

C/TAXAP/1331/2011 ORDER R/TAX APPEAL NO. 878 of 2012 With R/TAX APPEAL NO. 879 of 2012 With R/TAX APPEAL NO. 190 of 2013 With R/TAX APPEAL NO. 353 of 2013 With R/TAX APPEAL NO. 585 of 2013 With R/TAX APPEAL NO.686 of 2013 With R/TAX APPEAL NO. 787 of 2013 With R/TAX APPEAL NO. 792 of 2013 With R/TAX APPEAL NO. 871 of 2013 With R/TAX APPEAL NO. 961 of 2013 With R/TAX APPEAL NO. 962 of 2013 With R/TAX APPEAL NO. 963 of 2013 With R/TAX APPEAL NO. 964 of 2013 With R/TAX APPEAL NO. 1036 of 2013 With R/TAX APPEAL NO. 332 of 2014 With R/TAX APPEAL NO. 594 of 2014 With R/TAX APPEAL NO. 617 of 2014 With R/TAX APPEAL NO. 875 of 2014 ========================================================== COMMISSIONER OF INCOME TAX-I Versus ANUPAM SILK MILLS PRIVATE LTD ========================================================== Appearance: MRS KALPANAK RAVAL for the PETITIONER(s) No. 1 MRS MAUNA BHATT, for the PETITIONER(s) No. 1 MR VARUN K PATEL for the PETITIONER(s) No. 1 MR TUSHAR P HEMANI(2790) for the RESPONDENT(s) No. Page 2 of 3

C/TAXAP/1331/2011 ORDER MS VAIBHAVI K PARIKH(3238) for the RESPONDENT(s) No. MR MANISH J SHAH for the RESPONDENT(s) No. MR BS SOPARKAR for the RESPONDENT(s) No. MR RK PATEL for the RESPONDENT(s) No. MR TEJ SHAH for the RESPONDENT(s) No. ========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI and HONOURABLE MR.JUSTICE B.N. KARIA

Date : 17/09/2018 ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) We are informed that the tax effect involved in these appeals filed by the Revenue is below the minimum threshold prescribed by CBDT in its latest   circular   dated   11.7.2018   to   enable   the Revenue   to   maintain   appeals   before   the   High Court. Tax Appeals are therefore, dismissed only on this ground. (AKIL KURESHI, J) (B.N. KARIA, J) K.K. SAIYED Page 3 of 3

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