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

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TAXAP/422/2019HC GujaratGJHC24039168201927 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 to dispose of the appeal in view of the low tax effect, as per Circular No. 17/2019 dated 8th August, 2019. The appeal was not pressed by the appellant (Revenue). The Court noted the monetary limits for appeals before various authorities as per the circular, with appeals before the High Court having a monetary limit of Rs. 1,00,00,000. Since the appeal was not pressed due to the low tax effect, it was disposed of accordingly. The Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was decided on merits, and the operative direction was to dispose of the appeal.

What were the facts?

The Principal Commissioner of Income Tax (Central), Surat, filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Ashadevi Mittal (Prop. Mittal Chemicals). The appeal was notified for an order due to low tax effect. The appeal was filed against an order or action of an authority, but the specific authority and assessment year(s) are not recorded in the judgment. The amount in dispute is also not explicitly stated, but it is implied to be below the monetary limit for appeals before the High Court as per a relevant circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, in light of Circular No. 17/2019 dated 8th August, 2019 issued by the Central Board of Direct Taxes? (Question of law) Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed. The judgment states the appeal is not pressed in view of the low tax effect and the circular. Revenue's Contention: The revenue, through its counsel, did not press the appeal. The decision to not press the appeal was based on the new policy reflected in Circular No. 17/2019, which sets monetary limits for appeals. The appeal was notified for the purpose of passing an appropriate order in light of this circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/422/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 422 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/422/2019 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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