COMMISSIONER OF INCOME TAX - III vs. NIRMA INDUSTRIES LTD

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TAXAP/1403/2010HC GujaratGJHC24046197201027 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the Tax Appeal was not pressed by the Revenue in view of the low tax effect and the policy decision reflected in Circular No. 17/2019. The Court noted the monetary limits for appeals before the High Court as Rs. 1,00,00,000 as per the circular. Consequently, the appeal was disposed of in accordance with the circular. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was decided on merits.

What were the facts?

The Gujarat High Court was considering a Tax Appeal filed by the Commissioner of Income Tax - III against Nirma Industries Ltd. The appeal was listed for an appropriate order due to a 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. This circular outlines monetary limits for filing appeals. The appeal was not pressed by the appellant in view of this circular and the 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? The Revenue argued that the appeal was not pressed in view of the low tax effect and the policy outlined in Circular No. 17/2019. The circular specifies monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. The judgment does not record any specific arguments from the Assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/1403/2010 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1403 of 2010 ========================================================== COMMISSIONER OF INCOME TAX - III Versus NIRMA INDUSTRIES LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MRS SWATI SOPARKAR(870) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA

Date : 27/01/2020

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 8th 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 8th 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/1403/2010 ORDER Sr. No. Appeals/SLPs in Incometax 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) (BHARGAV D. KARIA, J) aruna Page 2 of 2

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