COMMISSIONER OF INCOME TAX (TDS) vs. IFFCO LTD.

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TAXAP/179/2014HC GujaratGJHC24044711201427 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 noted that the appeal was not pressed by the Revenue due to the low tax effect, in accordance with Circular No. 17/2019. This circular establishes revised monetary limits for appeals, with a limit of Rs. 1,00,000 for appeals before the High Court. The Court observed that the appeal was to be disposed of in light of this policy. Consequently, the appeal was disposed of. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original dispute was made as the appeal was not pressed.

What were the facts?

The Commissioner of Income Tax (TDS) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against IFFCO Ltd. 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 listed for disposal based on these new policy guidelines.

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 explicitly argue any points as the appeal was not pressed. However, the underlying reason for not pressing the appeal was the low tax effect, aligning with the circular. Revenue's contention: The Revenue did not press the appeal in view of the low tax effect, as per Circular No. 17/2019. The circular provides revised monetary limits for appeals before various authorities, including the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/179/2014 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 179 of 2014 ========================================================== COMMISSIONER OF INCOME TAX (TDS) Versus IFFCO LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) for the Opponent(s) No. 1 NOTICE SERVED(4) 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/179/2014 ORDER Sr. No. Appeals/SLPs in Incometax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,000 3 Before Supreme Court 2,00,000 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) CHANDRESH Page 2 of 2

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