COMMISSIONER OF INCOME TAX-II vs. REGENT GRANITO (INDIA) LTD

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TAXAP/1431/2011HC GujaratGJHC24045482201127 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 circular establishes monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. Since the appeal was not pressed due to the low tax effect, the Court disposed of the appeal accordingly. The reasoning is based on the administrative policy of the Revenue to withdraw or not press appeals below certain monetary thresholds to streamline litigation. The ratio is that appeals can be disposed of without merits if the appellant (Revenue) chooses not to press them due to administrative policy, such as low tax effect. The operative direction was to dispose of the appeal, with liberty reserved for the Revenue to revive it if any difficulty arises.

What were the facts?

The Commissioner of Income Tax-II (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Regent Granito (India) Ltd (Assessee). The appeal was notified for an appropriate order due to low tax effect. 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 Revenue in view of this circular and the low tax effect. The Court reserved liberty for the Revenue to revive the appeal in case of difficulty.

What were the issues?

1. Whether the Tax Appeal filed by the Revenue is to be dismissed on the grounds of low tax effect, as per Circular No. 17/2019 dated August 8, 2019? (Question of law) Assessee's Contention: The assessee did not make any specific arguments recorded in the judgment. The appeal was not pressed by the Revenue. Revenue's Contention: The Revenue did not press the appeal in view of the low tax effect and the policy outlined in Circular No. 17/2019, which specifies monetary limits for appeals before various authorities, including the High Court (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/1431/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1431 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-II Versus REGENT GRANITO (INDIA) LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR TEJ SHAH(5743) 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/1431/2011 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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