COMMISSIONER OF INCOME TAX - AHMEDABAD - III vs. NARAYAN ORGANICS PRIVATE LIMITED

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TAXAP/352/2013HC GujaratGJHC24043354201307 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 Tax Appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated 8th August 2019. The Court noted the monetary limit for appeals before the High Court as Rs. 1,00,00,000 as per the circular. Consequently, the appeal was disposed of accordingly. The Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original assessment or the grounds of appeal was made, as the appeal was not pressed.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax - Ahmedabad - III against Narayan Organics Private Limited. The appeal was notified for an appropriate order by the Registry. The primary reason for the notification and subsequent disposal was the low tax effect, as per Circular No. 17/2019 dated 8th August 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The appeal was not pressed by the appellant due to this low tax effect. The High Court of Gujarat at Ahmedabad, comprising Justices J.B. Pardiwala and Nisha M. Thakore, considered the circular and the unpressed appeal.

What were the issues?

The Tribunal had to decide whether to proceed with the hearing of the Tax Appeal filed by the Revenue, given the low tax effect and the CBDT's Circular No. 17/2019. The Revenue, represented by Mr. Manish R. Bhatt, Senior Advocate, did not press the appeal. The judgment does not explicitly record any arguments from the assessee, Narayan Organics Private Limited. The core issue revolved around the application of the CBDT's policy on monetary limits for appeals before the High Court, which stipulated a limit of Rs. 1,00,00,000. The appeal was to be disposed of in light of this circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/352/2013 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 352 of 2013 ========================================================== COMMISSIONER OF INCOME TAX - AHMEDABAD - III Versus NARAYAN ORGANICS PRIVATE LIMITED ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 NOTICE SERVED(4) for the Opponent(s) No. 1 RULE NOT RECD BACK(63) 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 Page 1 of 2

C/TAXAP/352/2013 ORDER DATED: 07/01/2022 referred to above, the table for monetary limits is as follows:- 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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