THE PR. COMMISSIONER OF INCOME TAX, RAJKOT 1 vs. M/S SAFARI FINE CLOTHING PVT. LTD

PDF · subscribers
TAXAP/177/2019HC GujaratGJHC24026240201927 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 of Gujarat at Ahmedabad disposed of the Tax Appeal. The Court noted that the appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. This circular establishes monetary limits for appeals, with a limit of Rs. 1,00,00,000 for appeals before the High Court. The Court followed the policy outlined in the circular and disposed of the appeal accordingly. The Revenue was granted liberty to revive the Tax Appeal in case of any difficulty. The specific findings on the merits of the original dispute before the Tribunal are not recorded as the appeal was not pressed.

What were the facts?

The Principal Commissioner of Income Tax, Rajkot (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against M/s Safari Fine Clothing Pvt. Ltd. (Assessee). The appeal was notified for passing an appropriate order due to low tax effect. The appeal was filed against an order passed by an Income Tax Appellate Tribunal (though the specific Tribunal order and assessment year(s) are not detailed in the provided text). The Revenue decided not to press the appeal based on Circular No. 17/2019 issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, considering the monetary limits prescribed by Circular No. 17/2019 (question of law and fact). Assessee's contentions: The assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. However, the underlying reason for the Revenue not pressing the appeal is the low tax effect, implying the dispute's monetary value falls below the threshold stipulated in the circular. Revenue's contentions: The Revenue argued that the appeal should be disposed of in light of Circular No. 17/2019, dated August 8, 2019, which specifies monetary limits for filing appeals before various authorities. The appeal was not pressed due to the low tax effect, as per the policy outlined in the circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/177/2019                                                                                                 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO.  177 of 2019 ========================================================== THE PR. COMMISSIONER OF INCOME TAX, RAJKOT 1 Versus M/S SAFARI FINE CLOTHING 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) 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 of Direct Taxes, New Delhi. 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 of Direct Taxes, New Delhi. Page  1 of  2

C/TAXAP/177/2019                                                                                                 ORDER 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 Limits (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000 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.) /MOINUDDIN Page  2 of  2

Recent GST High Court judgments

Search GST case law →