THE PRINCIPAL COMMISSIONER OF INCOME TAX, GANDHINAGAR vs. GOKUL REFOILS AND SOLVENT LTD.

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TAXAP/426/2019HC GujaratGJHC24043198201909 September 2019Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the Tax Appeal is not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The circular specifies monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. Consequently, the appeal is disposed of accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific findings were made on the merits of the case, as the appeal was withdrawn by the appellant.

What were the facts?

The Principal Commissioner of Income Tax, Gandhinagar (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad. The appeal was against Gokul Refoils and Solvent Ltd. (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 revised monetary limits for filing appeals. The circular sets 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 on the grounds of low tax effect, as per Circular No. 17/2019? The Revenue argued that the appeal is not pressed due to the low tax effect, referencing Circular No. 17/2019, which establishes monetary limits for appeals. The Assessee did not present any arguments as the appeal was not pressed by the Revenue.

AI-generated summary — verify with the full judgment below

C/TAXAP/426/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 426 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX, GANDHINAGAR Versus GOKUL REFOILS AND SOLVENT 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 A.C. RAO

Date : 09/09/2019

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/426/2019 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) (A. C. RAO, J) aruna Page 2 of 2

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