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

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TAXAP/1432/2011HC GujaratGJHC24045483201127 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 is not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated 8th August, 2019. The Court noted the monetary limits specified in the circular for appeals before the Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). Since the tax effect in this appeal was below the limit for High Court appeals, it was not pressed. The appeal was disposed of accordingly. The Revenue was granted liberty to revive the tax appeal in case of any difficulty. No specific finding was given on the merits of the original dispute.

What were the facts?

The Commissioner of Income Tax-II (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Regent Granito (India) Ltd (the assessee). The appeal was notified for an appropriate order due to low tax effect. The appeal was filed against an order or action of an unspecified authority for an unspecified assessment year. The amount in dispute is not explicitly stated but is implied to be below the monetary limit for appeals before the High Court as per a relevant circular. The procedural history is limited to the filing of the appeal and its listing before the High Court.

What were the issues?

1. Whether the Tax Appeal is maintainable before the High Court in light of the low tax effect, considering the Circular No. 17/2019 issued by the Central Board of Direct Taxes? (Question of law) The Revenue argued that the appeal is not pressed due to the low tax effect, referencing Circular No. 17/2019. The assessee's arguments are not recorded in the judgment. The circular provides monetary limits for appeals before various authorities, including the High Court, and this appeal falls below the specified limit for High Court appeals (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/1432/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1432 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/1432/2011 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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