COMMISSIONER OF INCOME TAX vs. N R AGRAWAL INDUSTRIES LTD

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TAXAP/288/2014HC GujaratGJHC24044787201407 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 disposed of the tax appeal. The decision was based on the low tax effect of the appeal, in accordance with Circular No. 17/2019 issued by the Central Board of Direct Taxes. This circular sets monetary limits for filing appeals. The court noted that the appeal was not pressed by the appellant (Revenue) in view of this circular. The court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No decision on the merits of the appeal was made.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (Revenue) against N R Agrawal Industries Ltd (Assessee). The appeal was notified for passing an appropriate order due to its low tax effect. The High Court of Gujarat at Ahmedabad was considering the appeal. The procedural history indicates that the appeal was being processed, and the court was to issue an order.

What were the issues?

1. Whether the appeal should be entertained given its low tax effect in light of CBDT Circular No. 17/2019. Assessee's Contention: The appeal is not pressed due to the low tax effect, as per Circular No. 17/2019. The assessee relies on the policy reflected in this circular, which sets monetary limits for appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Revenue's Contention: The judgment does not record any specific contention from the revenue regarding the merits of the appeal. The revenue's action of filing the appeal is implicitly challenged by the assessee's stance on low tax effect.

AI-generated summary — verify with the full judgment below

C/TAXAP/288/2014 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 288 of 2014 ========================================================== COMMISSIONER OF INCOME TAX Versus N R AGRAWAL INDUSTRIES LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) 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/288/2014 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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