COMMISSIONER OF INCOME TAX-II vs. MEDICAL TECHNOLOGIES PVT LTD

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TAXAP/150/2012HC GujaratGJHC24042784201227 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, as per Circular No. 17/2019 dated August 8, 2019. The circular establishes revised monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. Consequently, the appeal was disposed of in accordance with this policy. The court granted the Revenue liberty to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute, as the appeal was decided on procedural grounds related to the tax effect and departmental policy.

What were the facts?

The Commissioner of Income Tax-II (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against an order concerning Medical Technologies Pvt Ltd (Assessee). The appeal was notified for an appropriate order due to low tax effect. The court considered Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes, which revised monetary limits for filing appeals. The appeal was not pressed by the Revenue in light of this circular and the stated monetary limits for appeals before the High Court being Rs. 1,00,00,000. The court disposed of the appeal accordingly, reserving liberty for the Revenue to revive it if any difficulty arose.

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. Assessee's Contention: The assessee did not present any arguments as the appeal was not pressed by the Revenue. The Revenue's Contention: The Revenue submitted that the appeal was not pressed in view of the low tax effect and the revised monetary limits stipulated in Circular No. 17/2019, dated August 8, 2019. The circular sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/150/2012 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 150 of 2012 ========================================================== COMMISSIONER OF INCOME TAX-II Versus MEDICAL TECHNOLOGIES PVT LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE SERVED(64) 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/150/2012 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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