COMMISSIONER OF INCOME TAX II vs. GUJARAT MINERAL DEVELOPMENT CORPORATION LTD

PDF · subscribers
TAXAP/136/2013HC GujaratGJHC24043273201307 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 of Gujarat at Ahmedabad decided to dispose of the appeal in accordance with Circular No. 17/2019, dated August 8, 2019. The court noted that the appeal was not pressed by the Revenue due to the low tax effect. The circular establishes monetary limits for appeals, with a limit of Rs. 1,00,00,000 for appeals before the High Court. Since the tax effect in this appeal was below this limit, the Revenue chose not to press the matter. The court accordingly disposed of the appeal. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the appeal was disposed of based on the stated policy.

What were the facts?

The appeal, C/TAXAP/136/2013, was filed by the Commissioner of Income Tax II (Revenue) against Gujarat Mineral Development Corporation Ltd (Assessee). The appeal was listed for an appropriate order by the High Court of Gujarat at Ahmedabad. The primary reason for listing the appeal was its low tax effect. The court noted that the appeal was to be disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The appeal was not pressed by the Revenue due to this low tax effect.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not make any specific arguments as the appeal was not pressed by the Revenue. However, the context implies the assessee would benefit from the dismissal based on the circular. Revenue's Contention: The Revenue stated that the appeal was not pressed in view of the low tax effect, having regard to Circular No. 17/2019, dated August 8, 2019. The circular provides monetary limits for appeals before various authorities, with appeals before the High Court having a monetary limit of Rs. 1,00,00,000. The Revenue implicitly acknowledged that the tax effect in this appeal fell below the prescribed limit, making it not worth pursuing.

AI-generated summary — verify with the full judgment below

C/TAXAP/136/2013 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 136 of 2013 ========================================================== COMMISSIONER OF INCOME TAX II Versus GUJARAT MINERAL DEVELOPMENT CORPORATION LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) 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/136/2013 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

Recent GST High Court judgments

Search GST case law →