COMMISSIONER OF INCOME TAX vs. OME-SHIV DYESTUFF PVT LTD

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TAXAP/463/2012HC GujaratGJHC24042934201227 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 appeal is disposed of in view of the low tax effect and Circular No. 17/2019. The court explicitly stated that the appeal is not pressed by the Revenue for this reason. The operative direction is that 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 issue regarding the merits of the original assessment or the order under challenge was decided.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax (Revenue) against an order concerning OME-SHIV DYESTUFF PVT LTD (Assessee). The appeal was listed for passing an appropriate order due to a low tax effect. The High Court of Gujarat at Ahmedabad noted that the appeal was not pressed by the Revenue in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular sets monetary limits for filing appeals. The court referred to the table in the circular, which 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 a low tax effect, as per Circular No. 17/2019? The Revenue argued that the appeal is not pressed in view of the low tax effect and the aforementioned circular. The Assessee's contentions are not recorded in the judgment. The issue revolves around the applicability of the CBDT's monetary limits for filing appeals to the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/463/2012 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 463 of 2012 ========================================================== COMMISSIONER OF INCOME TAX Versus OME-SHIV DYESTUFF PVT LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR TARAK DAMANI(6089) 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/463/2012 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

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) Vahid Page 2 of 2

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