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

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TAXAP/1409/2010HC GujaratGJHC24046201201007 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the appeal should be disposed of in accordance with Circular No. 17/2019, which stipulates monetary limits for filing appeals. The Revenue had stated that the appeal was not pressed due to the low tax effect, referencing this circular. The Court acknowledged the circular's policy regarding monetary limits for appeals before the High Court (Rs. 1,00,00,000). Consequently, the appeal was disposed of based on this policy. The Court also reserved 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 procedurally.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax-II (the Revenue) against India Gelatine & Chemicals Ltd (the Assessee). The appeal was listed for an appropriate order by the Registry. The appeal was notified due to its low tax effect. The Court noted that the appeal was not pressed by the Revenue in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular sets monetary limits for filing appeals. The Court referred to the table within the circular, which specifies a monetary limit of Rs. 1,00,00,000 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? The Revenue argued that the appeal was not pressed in view of the low tax effect, relying on Circular No. 17/2019. The judgment does not record any arguments from the Assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/1409/2010 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1409 of 2010 ========================================================== COMMISSIONER OF INCOME TAX-II Versus INDIA GELATINE & CHEMICALS LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) 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 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 Page 1 of 2

C/TAXAP/1409/2010 ORDER DATED: 07/01/2022 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. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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