COMMISSIONER OF INCOME TAX vs. SAIYED PAPER MILLS LTD

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TAXAP/2409/2010HC GujaratGJHC24046398201007 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the appeal should be disposed of due to the low tax effect, in accordance with Circular No. 17/2019. The reasoning was based on the policy reflected in the circular, which establishes monetary limits for appeals. For appeals before the High Court, the monetary limit is Rs. 1,00,00,000. Since the tax effect in this appeal was low, it fell within the purview of the circular's guidelines for not pursuing appeals. The operative direction was to dispose of the appeal accordingly. The Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the decision was based on procedural policy.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax (Revenue) against Saiyed Paper Mills Ltd (Assessee). The appeal was listed for an appropriate order by the Registry. The appeal was notified due to its low tax effect. The Court referred to 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 a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The appeal was disposed of in light of this circular and the low tax effect.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in light of CBDT Circular No. 17/2019? Assessee's Contention: The assessee did not explicitly argue, but the appeal was not pressed by the Revenue due to low tax effect. The Court considered the Circular No. 17/2019, which sets monetary limits for appeals. Revenue's Contention: The Revenue did not press the appeal in view of the low tax effect, referencing Circular No. 17/2019. The circular provides a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/2409/2010 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 2409 of 2010 ========================================================== COMMISSIONER OF INCOME TAX Versus SAIYED PAPER MILLS LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) 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 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/2409/2010 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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