THE PRINCIPAL COMMISSIONER OF INCOME TAX-2 vs. INDUCTOTHERM (INDIA)PVT.LTD.

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TAXAP/201/2016HC GujaratGJHC24051679201627 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 listed for passing an appropriate order, specifically because of the low tax effect. The Court referred to Circular No. 17/2019, dated August 8, 2019, which outlines monetary limits for appeals. According to this circular, appeals before the High Court have a monetary limit of Rs. 1,00,00,000. The Court observed that the present appeal was not pressed by the Revenue in view of the low tax effect, aligning with the policy reflected in the aforementioned circular. Consequently, the appeal was disposed of accordingly. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-2 (the Revenue) against Inductotherm (India) Pvt. Ltd. (the Assessee). The appeal was listed for an order regarding its disposition. The appeal was notified due to a 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 sets monetary limits for filing appeals.

What were the issues?

1. Whether the appeal should be disposed of in light of Circular No. 17/2019 due to a low tax effect? (Question of law) Assessee's Contention: The appeal is not pressed due to the low tax effect, as per Circular No. 17/2019. The circular provides monetary limits for appeals before various authorities, including the High Court (Rs. 1,00,00,000). Revenue's Contention: No specific contention is recorded for the Revenue regarding the merits of the appeal. The appeal's listing is noted as being due to low tax effect.

AI-generated summary — verify with the full judgment below

C/TAXAP/201/2016 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 201 of 2016 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX-2 Versus INDUCTOTHERM (INDIA)PVT.LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 DARSHAN R PATEL(8486) 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. Page 1 of 2

C/TAXAP/201/2016 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 Monetray

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) PALAK Page 2 of 2

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