THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) vs. NANDESARI INDUSTRIES ASSOCIATION

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TAXAP/276/2019HC GujaratGJHC24037664201907 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 of Gujarat held that the Tax Appeal was not pressed by the Revenue due to the low tax effect, as per Circular No. 17/2019. The circular establishes monetary limits for appeals, with Rs. 1,00,00,000 being the threshold for appeals before the High Court. The court acknowledged the policy reflected in the circular and disposed of the appeal accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue regarding the merits of the original assessment or the order under challenge was decided.

What were the facts?

The Commissioner of Income Tax (Exemptions), the appellant, filed a Tax Appeal before the High Court of Gujarat at Ahmedabad. The appeal was against an order concerning the respondent, Nandesari Industries Association. The appeal was notified for passing an appropriate order due to its low tax effect. The court noted that the appeal was not pressed by the appellant in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

What were the issues?

1. Whether the Tax Appeal filed by the Revenue is to be dismissed on the grounds of low tax effect as per Circular No. 17/2019? The Revenue, through its counsel Mr. Manish R. Bhatt, Senior Advocate, stated that the appeal was not pressed in view of the low tax effect, referencing Circular No. 17/2019. The judgment does not record any specific arguments from the respondent, Nandesari Industries Association.

AI-generated summary — verify with the full judgment below

C/TAXAP/276/2019 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 276 of 2019 ========================================================== THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) Versus NANDESARI INDUSTRIES ASSOCIATION ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR SN DIVATIA(1378) 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/276/2019 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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