PRINCIPAL COMMISSIONER OF INCOME TAX 2 vs. MEGHMANI ORGANICS LTD

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TAXAP/383/2015HC GujaratGJHC24047818201527 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 Tax Appeal was not pressed by the Revenue in view of the low tax effect, aligning with Circular No. 17/2019. The Court noted the monetary limits specified in the circular for appeals before the High Court (Rs. 1,00,00,000). Consequently, the appeal was disposed of accordingly. The Court also granted liberty to the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original assessment or the appeal itself was made, as the appeal was not pressed.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax (Revenue) against Meghmani Organics Ltd (Assessee). The appeal was listed for an order due to its 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 revised monetary limits for filing appeals. The appeal was disposed of based on this policy, with liberty reserved for the Revenue to revive it if any difficulty arises.

What were the issues?

The primary issue before the High Court was whether to proceed with the hearing of the Tax Appeal, given the Revenue's decision not to press it due to a low tax effect as per CBDT Circular No. 17/2019. The Revenue's contention was that the appeal should be disposed of in accordance with the new policy, which sets monetary limits for appeals before various judicial forums, including the High Court (Rs. 1,00,00,000). The Assessee's arguments are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/383/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 383 of 2015 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 2 Versus MEGHMANI ORGANICS LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) 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 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. Page 1 of 2

C/TAXAP/383/2015 ORDER 3. According to the new policy as reflected from the Circular referred to above, the table for monetary limits is as follows: Sr.No. Appeals/SLPs in Income-tax matters Monetray

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) (BHARGAV D. KARIA, J) PALAK Page 2 of 2

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