THE PRINCIPAL COMMISSIONER OF INCOME TAX-1 vs. M/S CHAMUNDA PHARMA MACHINERY PVT. LTD

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TAXAP/456/2019HC GujaratGJHC24043477201927 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 in view of the low tax effect, having regard to Circular No. 17/2019, dated August 8, 2019. The Court noted the new policy reflected in the circular, which sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal was disposed of accordingly. The Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute, as the appeal was withdrawn by the appellant.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-1 against M/s Chamunda Pharma Machinery Pvt. Ltd. The appeal was notified for an appropriate order due to low tax effect. The appeal was to be disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. The Circular outlines monetary limits for filing appeals before various authorities, including the High Court at Rs. 1,00,00,000. The judgment does not specify the assessment year(s) or the amount in dispute, nor does it detail the procedural history prior to this High Court appeal.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not present any arguments as the appeal was not pressed by the revenue. Revenue's Contention: The revenue argued that the appeal should be disposed of in view of Circular No. 17/2019, dated August 8, 2019, which sets monetary limits for appeals. The appeal was not pressed due to the low tax effect, aligning with the policy outlined in the circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/456/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 456 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX-1 Versus M/S CHAMUNDA PHARMA MACHINERY PVT. LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 HIREN J TRIVEDI(8808) 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/456/2019 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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