COMMISSIONER OF INCOME TAX-I vs. ALFA ICA (INDIA) LTD

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TAXAP/401/2013HC GujaratGJHC24043372201327 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 is not pressed by the Revenue due to the low tax effect, in accordance with Circular No. 17/2019. The circular establishes a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Since the present appeal falls within this limit, it is disposed of accordingly. The Court explicitly stated that in case of any difficulty, the Revenue reserves the liberty to revive the tax appeal. No specific findings were made on the merits of the original dispute, as the appeal was decided on procedural grounds related to the tax effect policy.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax-I (the Revenue) against Alfa ICA (India) Ltd (the assessee). The appeal was listed for passing an appropriate order. The appeal was notified due to its low tax effect. The Court considered Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular provides a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The Court noted that the present appeal falls within the scope of this circular.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, in light of Circular No. 17/2019? Assessee's Contentions: The assessee did not explicitly argue any points as the appeal was not pressed. However, the underlying reason for not pressing the appeal, as stated by the Revenue, was the low tax effect in view of Circular No. 17/2019. Revenue's Contentions: The Revenue stated that the tax appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019, dated August 8, 2019. The Revenue relied on the monetary limits prescribed in the said circular for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/401/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 401 of 2013 ========================================================== COMMISSIONER OF INCOME TAX-I Versus ALFA ICA (INDIA) LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 M/S TRIVEDI & GUPTA(949) 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 Page 1 of 2

C/TAXAP/401/2013 ORDER 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

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) Vahid Page 2 of 2

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