COMMISSIONER OF INCOME TAX RAJKOT 3 vs. KANERIYA OIL INDS.

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TAXAP/367/2015HC GujaratGJHC24047809201527 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal was not pressed by the appellant (Revenue) in view of the low tax effect, citing Circular No. 17/2019, dated August 8, 2019. This circular establishes a monetary limit of Rs. 1,00,000 for appeals before the High Court. Consequently, the appeal was disposed of in accordance with this policy. The Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. The principle here is that tax authorities are bound by their own circulars regarding monetary limits for appeals, and appeals below such limits may not be pursued.

What were the facts?

The Gujarat High Court was considering a Tax Appeal filed by the Commissioner of Income Tax, Rajkot, against Kaneriya Oil Inds. The appeal was listed for an appropriate order due to low tax effect. The Court noted Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which revised monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,000 for appeals before the High Court. The appeal was being disposed of in light of this circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, considering Circular No. 17/2019? (Question of law and fact, turning on the applicability of the CBDT circular). Assessee's Contention: The appeal is not pressed in view of the low tax effect, as per Circular No. 17/2019, dated August 8, 2019. The assessee relies on the policy reflected in this circular. Revenue's Contention: The judgment does not record any specific contention from the revenue regarding the issues. However, the appeal was filed by the revenue, indicating an initial disagreement with a lower authority's decision.

AI-generated summary — verify with the full judgment below

C/TAXAP/367/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 367 of 2015 ========================================================== COMMISSIONER OF INCOME TAX RAJKOT 3 Versus KANERIYA OIL INDS. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR RK PATEL(1082) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA

Date : 27/01/2020

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 8th 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 8th 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/367/2015 ORDER Sr. No. Appeals/SLPs in Income­tax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,000 3 Before Supreme Court 2,00,000 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) (BHARGAV D. KARIA, J) CHANDRESH Page 2 of 2

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