COMMISSIONER OF INCOME TAX I vs. L K INDIA PVT LTD

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TAXAP/14/2013HC GujaratGJHC24043235201329 January 2019Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE DR. JUSTICE A. P. THAKER2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal is not pressed by the appellant (Revenue). This decision is based on the admitted fact that the tax effect involved in the appeal is less than Rs. 50,00,000/-. The Court took into consideration Circular No. 3/2018 dated 11th July, 2018, issued by the CBDT, which mandates that no appeal should be filed before the High Court if the tax effect does not exceed Rs. 50,00,000/-. This circular has also been made retrospectively applicable to pending appeals. Consequently, the learned senior standing counsel for the appellant stated that they do not press the present appeal. The appeal is accordingly disposed of as not pressed in light of the aforementioned circular. The Court also noted that if there is any error in the computation of the tax effect or if the circular is not applicable for any reason, the appellant would have the liberty to seek revival of the appeal.

What were the facts?

This case involves a Tax Appeal filed by the Commissioner of Income Tax I (the Revenue) against L K India Pvt Ltd (the Assessee). The appeal was filed before the High Court of Gujarat at Ahmedabad. The assessment year(s) are not explicitly stated in the provided text. The appeal challenges an order or action that is not detailed, but the core of the matter revolves around the tax effect involved. It is an admitted position that the tax effect in this appeal is less than Rs. 50,00,000/-. The procedural history is that the appeal was filed and is now being disposed of.

What were the issues?

1. Whether the present appeal, with a tax effect below the monetary limit prescribed by CBDT Circular No. 3/2018, should be entertained by the High Court. The Revenue's contention, as presented by its learned Senior Standing Counsel, is that the appeal should not be pressed. This is based on the admitted fact that the tax effect is less than Rs. 50,00,000/-. The Revenue relies on Circular No. 3/2018 dated 11th July, 2018, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular stipulates that no appeal shall be filed before the High Court where the tax effect does not exceed Rs. 50,00,000/- and has been made retrospectively applicable to pending appeals. The Assessee's contention is not explicitly recorded in the judgment, but their learned advocate is present. Given the Revenue's stance and the admitted facts, the Assessee would likely not oppose the appeal being disposed of on the grounds raised by the Revenue.

AI-generated summary — verify with the full judgment below

C/TAXAP/14/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 14 of 2013 ========================================================== COMMISSIONER OF INCOME TAX I Versus L K INDIA PVT LTD ========================================================== Appearance: MR.VARUN K.PATEL(3802) for the APPELLANT MR TUSHAR P HEMANI(2790) for the RESPONDENT(s) No. 1 MS VAIBHAVI K PARIKH(3238) for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE DR.JUSTICE A. P. THAKER

Date : 29/01/2019

ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mr. Varun K. Patel, learned Senior Standing Counsel for the appellant and Mr. Tushar Hemani, learned advocate for the respondent. 2. It is an admitted position between the parties that the tax effect involved in this appeal is less than Rs.50,00,000/-. Under the circumstances, in the light of the Circular No.3/2018 dated 11th July, 2018 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes which provides that no appeal wherein the tax effect does not exceed the monetary limit of Rs.50,00,000/- shall be filed before the High Court and has also been made retrospectively applicable to pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. Page 1 of 2

C/TAXAP/14/2013 ORDER 3. The appeal is accordingly disposed of as not pressed in the light of the Circular dated 11th July, 2018. However, in case there is any error in the computation of the tax effect involved or if for any reason, the circular is not applicable, it would be open for the appellant to seek revival of the appeal. (HARSHA DEVANI, J) (A. P. THAKER, J) V.R. PANCHAL Page 2 of 2

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