PRINCIPAL COMMISSIOER OF INCOME TAX-2, vs. MONO STEEL(INDIA) LTD

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TAXAP/1338/2018HC GujaratGJHC24069533201807 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. The Court noted the monetary limits specified in the circular for appeals before the High Court (Rs. 1,00,00,000). Consequently, the appeal was disposed of accordingly. The Court also granted liberty to 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 not pressed.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-2 (the Revenue) against Mono Steel (India) Ltd (the Assessee). The appeal was listed for an order due to its low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The appeal was disposed of based on this circular, with liberty reserved for the Revenue to revive it if any difficulty arose.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect as per Circular No. 17/2019? (Question of law) Assessee's Contention: The Assessee did not make any specific arguments recorded in the judgment. The appeal was not pressed by the Revenue. Revenue's Contention: The Revenue contended that the appeal should be disposed of in view of the low tax effect, citing Circular No. 17/2019, dated August 8, 2019. This circular sets monetary limits for appeals before various authorities, including the High Court, which was Rs. 1,00,00,000. The Revenue indicated that the appeal was not pressed due to this policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/1338/2018 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1338 of 2018 ========================================================== PRINCIPAL COMMISSIOER OF INCOME TAX-2, Versus MONO STEEL(INDIA) LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR KETAN H SHAH(2705) for the Opponent(s) No. 1 MR. AMAN K SHAH(9992) 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/1338/2018 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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