COMMISSIONER OF INCOME TAX-IV vs. UNIQUE MERCANTILE SERVICE P LTD

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TAXAP/1698/2009HC GujaratGJHC24041033200931 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 indicated by Circular No. 17/2019. The court noted the monetary limits prescribed by the circular for appeals before different authorities, including Rs. 1,00,00,000 for appeals before the High Court. Since the appeal was not pressed by the Revenue due to its low tax effect, the court disposed of the appeal accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax-IV (the Revenue) against Unique Mercantile Service P Ltd (the assessee). The appeal was listed for an order due to its low tax effect. The High Court of Gujarat at Ahmedabad was to pass an appropriate order, considering Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. The circular outlines monetary limits for filing appeals. The appeal was brought before the High Court, which has a monetary limit of Rs. 1,00,00,000 for appeals.

What were the issues?

1. Whether the appeal should be disposed of in light of Circular No. 17/2019 concerning low tax effect? (Question of law) Assessee's Contentions: The assessee's representative was not recorded as making specific arguments. However, the appeal was not pressed by the Revenue. Revenue's Contentions: The Revenue stated that the appeal is not pressed in view of the low tax effect, as per Circular No. 17/2019. The circular provides 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/1698/2009 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1698 of 2009 ========================================================== COMMISSIONER OF INCOME TAX-IV Versus UNIQUE MERCANTILE SERVICE P LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MRS SWATI SOPARKAR(870) 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/1698/2009 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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