COMMISSIONER OF INCOME TAX - AHMEDABAD - III vs. N K PROTEINS LTD

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TAXAP/418/2013HC GujaratGJHC24043379201327 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 appellant (Revenue) due to the low tax effect, as per Circular No. 17/2019. The Court noted the monetary limits specified in the circular for appeals before the Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). Consequently, the Court disposed of the appeal in accordance with this policy. The Court also 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.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax - Ahmedabad - III against N K Proteins Ltd. The appeal was listed for an appropriate order by the Registry. The appeal was notified due to its low tax effect. The Court was to dispose of the appeal in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. The circular outlines monetary limits for filing appeals. The appeal was not pressed by the appellant.

What were the issues?

The primary issue before the Court was how to dispose of the Tax Appeal given its low tax effect, in accordance with the CBDT's Circular No. 17/2019. The Court needed to decide whether to dismiss the appeal based on the new policy. The appellant (Revenue) argued that the appeal should be disposed of in view of the low tax effect and the policy outlined in Circular No. 17/2019. The respondent (Assessee) did not record any specific arguments, but the appeal was not pressed by the Revenue.

AI-generated summary — verify with the full judgment below

C/TAXAP/418/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 418 of 2013 ========================================================== COMMISSIONER OF INCOME TAX - AHMEDABAD - III Versus N K PROTEINS LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE SERVED(64) 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/418/2013 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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