COMMISSIONER OF INCOME TAX-III vs. NIRMA INDUSTRIES LTD

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TAXAP/210/2010HC GujaratGJHC24046023201027 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 decided that the appeal should be disposed of in accordance with Circular No. 17/2019 due to the low tax effect. The Revenue stated that the appeal was not pressed. The Court noted the monetary limits specified in the circular, with appeals before the High Court having a limit of Rs. 1,00,00,000. The appeal was disposed of based on this policy. The Court also granted liberty to the Revenue to revive the tax appeal if any difficulty arises. No specific issue regarding the merits of the original assessment or the order under challenge was decided.

What were the facts?

The appeal was filed by the Commissioner of Income Tax-III against Nirma Industries Ltd. The appeal was notified for an appropriate order due to low tax effect. The appeal was not pressed by the appellant in view of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines new monetary limits for filing appeals. The appeal was disposed of accordingly, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? Assessee's contention: The assessee did not make any explicit arguments as the appeal was not pressed by the Revenue. Revenue's contention: The Revenue submitted that the appeal is not pressed in view of the low tax effect, referencing Circular No. 17/2019. The circular sets monetary limits for appeals before various authorities, including the High Court at Rs. 1,00,00,000. The appeal is to be disposed of in light of this new policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/210/2010 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 210 of 2010 ========================================================== COMMISSIONER OF INCOME TAX-III Versus NIRMA INDUSTRIES 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 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/210/2010 ORDER Sr. No. Appeals/SLPs in Incometax 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) (BHARGAV D. KARIA, J) aruna Page 2 of 2

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