COMMISSIONER OF INCOME TAX vs. N R AGRAWAL INDUSTRIES LTD

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TAXAP/289/2014HC GujaratGJHC24044788201407 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 held that the appeal is not pressed in view of the low tax effect, as per Circular No. 17/2019. The Court referred to the monetary limits specified in the circular, noting that the limit for appeals before the High Court is Rs. 1,00,00,000. Consequently, the appeal was disposed of in accordance with this policy. The Court also granted liberty to the Revenue to revive the tax appeal if any difficulty arises. No decision was made on the merits of the original dispute.

What were the facts?

The Commissioner of Income Tax (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against N R Agrawal Industries Ltd (Assessee). The appeal was notified for passing an appropriate order due to low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The High Court noted the new policy and the monetary limit for appeals before the High Court, which is Rs. 1,00,00,000. 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 on the grounds of low tax effect as per Circular No. 17/2019? (Question of law) Assessee's Contention: The appeal is not pressed due to the low tax effect, in accordance with Circular No. 17/2019. The circular provides revised monetary limits for filing appeals, and this appeal falls below the threshold for appeals before the High Court. Revenue's Contention: No specific contention was recorded for the Revenue regarding the merits of the appeal. The Revenue's stance was to withdraw or not press the appeal based on the low tax effect policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/289/2014 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 289 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/289/2014 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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