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

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TAXAP/1407/2010HC GujaratGJHC24046199201031 July 2020Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH,HONOURABLE MR. JUSTICE J.B.PARDIWALA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court decided to dispose of the appeal in view of the low tax effect, as per Circular No. 17/2019. The Court noted the updated monetary limits for appeals before the High Court as Rs. 1,00,00,000. Since the appeal was not pressed by the Revenue due to its low tax effect, it was disposed of accordingly. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original assessment or the grounds of appeal was made, as the appeal was not pressed.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax-II (Revenue) against India Gelatine & Chemicals Ltd (Assessee). The appeal was listed for an appropriate order by the High Court of Gujarat at Ahmedabad. The appeal was notified due to its low tax effect. The High Court considered 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 to be disposed of in light of this circular and its updated monetary limits for appeals before the High Court.

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 appeal is not pressed due to the low tax effect, in accordance with Circular No. 17/2019. This circular provides updated monetary limits for appeals, and the present appeal falls below the threshold for appeals before the High Court. Revenue's Contention: The judgment does not record any specific contention from the Revenue regarding the merits of the appeal. The Revenue's participation appears to be in response to the listing of the appeal for an order concerning its maintainability due to low tax effect.

AI-generated summary — verify with the full judgment below

C/TAXAP/1407/2010 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1407 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 THE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA

Date : 31/07/2020

ORAL ORDER (PER : HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH) 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. Page 1 of 2

C/TAXAP/1407/2010 ORDER 3. According to the new policy as reflected from the Circular referred to above, the table for monetary limits is as follows: 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. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) ALI ISTAYAK Page 2 of 2

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