THE PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL, SURAT vs. ASHADEVI MITTAL (PROP. MITTAL CHEMICALS)

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TAXAP/419/2019HC GujaratGJHC24039162201927 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 of Gujarat at Ahmedabad disposed of the Tax Appeal. The decision was based on the Revenue's submission that the appeal was not pressed due to a low tax effect, as per Circular No. 17/2019 dated August 8, 2019. This circular sets monetary limits for appeals, with Rs. 1,00,00,000 being the threshold for appeals before the High Court. The Court noted that the appeal was being disposed of in accordance with this circular. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific findings on the merits of the original assessment or the grounds of appeal were recorded, as the appeal was not pressed.

What were the facts?

The Principal Commissioner of Income Tax, Central, Surat (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Ashadevi Mittal (Prop. Mittal Chemicals) (the assessee). The appeal was notified for an appropriate order due to a 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, which sets monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? Assessee's Contention: The assessee did not file any specific arguments as the appeal was not pressed by the Revenue. However, the appeal was being considered for disposal based on the low tax effect. Revenue's Contention: The Revenue contended that the appeal should be disposed of in view of the low tax effect, citing Circular No. 17/2019 dated August 8, 2019. This circular establishes monetary limits for filing appeals, and the current appeal falls below the threshold for High Court appeals (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/419/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 419 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL, SURAT Versus ASHADEVI MITTAL (PROP. MITTAL CHEMICALS) ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 UMAIDSINGH BHATI(7973) 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/419/2019 ORDER Sr. No. Appeals/SLPs in Incometax 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 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) GIRISH Page 2 of 2

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