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

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TAXAP/368/2015HC GujaratGJHC24047810201527 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 decided that the Tax Appeal is not pressed by the appellant (Revenue) in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The Court noted the monetary limits for appeals before various authorities as per the circular, with the limit before the High Court being Rs. 1,00,000. 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 findings were made on the merits of the original assessment or any other substantive issue.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax, Rajkot III, against Kaneriya Oil Inds. The appeal was listed for an appropriate order due to low tax effect. The appeal was notified for disposal in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals. The specific tax effect of this appeal is not explicitly stated, but it falls below the threshold for appeals before the High Court as per the aforementioned circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed. The decision to not press the appeal was based on the low tax effect. The assessee relied on Circular No. 17/2019. Revenue's Contention: The revenue, as the appellant, did not press the appeal. The decision to not press the appeal was based on the low tax effect and the guidelines provided in Circular No. 17/2019. The revenue relied on Circular No. 17/2019.

AI-generated summary — verify with the full judgment below

C/TAXAP/368/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 368 of 2015 ========================================================== COMMISSIONER OF INCOME TAX RAJKOT III 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/368/2015 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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