COMMISSIONER OF INCOME TAX-II vs. INDIA GELATINE & CHEMICALS LTD

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TAXAP/1406/2010HC GujaratGJHC24046198201027 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 appeal was not pressed in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The court disposed of the appeal accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the amount in dispute was not recorded. The judgment does not provide any reasoning on the merits of the original dispute, as the appeal was disposed of on procedural grounds related to the tax effect policy.

What were the facts?

The Commissioner of Income Tax-II filed a Tax Appeal before the High Court of Gujarat at Ahmedabad. The appeal was against an order passed by an ITAT (Income Tax Appellate Tribunal), though the specific order and assessment year(s) are not detailed. The appeal was notified for disposal due to low tax effect. The Revenue, represented by Mrs. Mauna M. Bhatt, did not press the appeal. The respondent was India Gelatine & Chemicals Ltd., represented by Mr. Manish J. Shah. The court was considering the appeal in light of Circular No. 17/2019 dated August 8, 2019, issued by the CBDT.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect as per Circular No. 17/2019? The Revenue contended that the appeal was not pressed due to the low tax effect, citing Circular No. 17/2019. The Assessee did not record any specific arguments in this regard. The circular sets monetary limits for filing appeals before various authorities, including the High Court at Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/1406/2010 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1406 of 2010 ========================================================== COMMISSIONER OF INCOME TAX-II Versus INDIA GELATINE & CHEMICALS LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) 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/1406/2010 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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