PRINCIPAL COMMISSIONER OF INCOME TAX 1, vs. CASIL HEALTH PRODUCTS LTD

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TAXAP/185/2018HC GujaratGJHC24011198201807 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court decided to dispose of the Tax Appeal in view of the low tax effect, as per Circular No. 17/2019. The Court noted that the appeal was not pressed by the appellant (Principal Commissioner of Income Tax 1) in light of the monetary limits prescribed by the circular. The circular sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Since the tax effect in this appeal was below this threshold, it was deemed appropriate to dispose of the appeal without delving into the merits. The Court explicitly reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; rather, the appeal was not adjudicated on its merits due to the policy decision reflected in the circular.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax 1 against Casil Health Products Ltd. The appeal was listed for an appropriate order by the Registry. The appeal was notified due to its low tax effect. The Court was to consider Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which outlines monetary limits for filing appeals. The circular specifies limits for appeals before the Income Tax Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). The appeal was being disposed of in light of this circular.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed. The judgment states the appeal is not pressed in view of the low tax effect and Circular No. 17/2019. Revenue's Contention: The revenue, through its counsel, did not press the appeal due to the low tax effect, referencing Circular No. 17/2019. The judgment does not record any specific arguments made by the revenue beyond this.

AI-generated summary — verify with the full judgment below

C/TAXAP/185/2018 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 185 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 1, Versus CASIL HEALTH PRODUCTS LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

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 8 th 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 8 th 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/185/2018 ORDER DATED: 07/01/2022 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. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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