COMMISSIONER OF INCOME TAX -II vs. MADHUSUDAN INDUSTRIES LTD

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TAXAP/482/2014HC GujaratGJHC24044852201427 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 was not pressed by the Revenue due to the low tax effect, as per Circular No. 17/2019. The circular establishes monetary limits for appeals before various authorities, including the High Court. In this case, the appeal's tax effect fell below the threshold specified for appeals before the High Court. Therefore, the appeal was disposed of accordingly. The court also granted the Revenue liberty to revive the tax appeal in case of any difficulty. No specific findings were made on the merits of the original assessment or any other substantive issue.

What were the facts?

The Commissioner of Income Tax - II (the Revenue) filed a tax appeal before the High Court of Gujarat at Ahmedabad against Madhusudan Industries Ltd (the assessee). The appeal was notified for an appropriate order due to 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. This circular outlines revised monetary limits for filing appeals. The appeal was disposed of based on these revised limits, with liberty reserved for the Revenue to revive it if any difficulty arose.

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 and fact). The Revenue argued that the appeal was not pressed in view of the low tax effect, citing Circular No. 17/2019. The assessee's arguments are not recorded in the judgment. The judgment does not explicitly state the specific tax effect or the assessment year(s) involved.

AI-generated summary — verify with the full judgment below

C/TAXAP/482/2014 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 482 of 2014 ========================================================== COMMISSIONER OF INCOME TAX -II Versus MADHUSUDAN INDUSTRIES LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) 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/482/2014 ORDER Sr. No. Appeals/SLPs in Incometax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,000 3 Before Supreme Court 2,00,000 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) CHANDRESH Page 2 of 2

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