COMMISSIONER OF INCOME TAX-II vs. MARADIA CHEMICALS LTD

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TAXAP/2237/2009HC GujaratGJHC24041101200909 September 2019Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that all the captioned tax appeals were not pressed by the Revenue due to the low tax effect, in accordance with Circular No. 17/2019 dated August 8, 2019. This circular establishes revised monetary limits for filing appeals. The Court disposed of all the appeals accordingly. The reasoning is based on the Revenue's decision not to pursue these appeals given the financial threshold set by the circular. The ratio decidendi is that appeals falling below the specified monetary limits, as per the CBDT's policy, will not be pursued. The operative direction was to dispose of the appeals, with liberty reserved for the Revenue to revive them if any difficulty arises.

What were the facts?

The Commissioner of Income Tax-I filed these tax appeals before the High Court of Gujarat at Ahmedabad. The appeals were against Aakar Leasing & Financial Services Ltd. The appeals were listed for appropriate orders due to low tax effect. The Court noted that all captioned tax appeals were not pressed by the appellant (Revenue) in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals. The Court reserved liberty for the Revenue to revive the tax appeals in case of any difficulty.

What were the issues?

1. Whether the appeals are to be dismissed due to low tax effect as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not make any arguments as the appeals were not pressed by the Revenue. Revenue's Contention: The Revenue submitted that all the captioned tax appeals are not pressed in view of the low tax effect, having regard to Circular No. 17/2019, dated 8th August, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board Direct Taxes. The circular specifies monetary limits for appeals before various authorities, with a limit of Rs. 1,00,00,000 for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/1541/2009 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1541 of 2009 With R/TAX APPEAL NO. 1542 of 2009 With R/TAX APPEAL NO. 2237 of 2009 ========================================================== COMMISSIONER OF INCOME TAX-I Versus AAKAR LEASING & FINANCIAL SERVICES LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE SERVED BY DS(65) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO

Date : 09/09/2019

COMMON ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 1. The Registry has notified all the captioned tax appeals for the purpose of passing appropriate orders. All the captioned appeals have been notified because of the low tax effect. These appeals are 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. All the captioned tax appeals are 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/1541/2009 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 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, all the appeals are disposed of accordingly. In case of any difficulty, we reserve the liberty for the Revenue to revive the tax appeal. (J. B. PARDIWALA, J) (A. C. RAO, J) aruna Page 2 of 2

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