COMMISSIONER OF INCOME TAX AHMEDABAD III vs. RUSHI AGROTECH MARKETING PVT. LTD

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TAXAP/485/2014HC GujaratGJHC24044853201427 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 tax appeal. The court noted that the appeal was not pressed by the appellant (Revenue) in view of the low tax effect, citing Circular No. 17/2019. This circular sets a monetary limit of Rs. 1,00,000 for appeals before the High Court. The court disposed of the appeal accordingly. However, it reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the assessment year(s) were not explicitly detailed in the judgment, but the decision hinges on the monetary threshold set by the circular.

What were the facts?

The Gujarat High Court was considering a Tax Appeal filed by the Commissioner of Income Tax, Ahmedabad III, against Rushi Agrotech Marketing Pvt. Ltd. The appeal was listed for an appropriate order due to a low tax effect. The court noted 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 specified a monetary limit of Rs. 1,00,000 for appeals before the High Court. The appeal was being disposed of in light of this circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in light of Circular No. 17/2019? (Question of law) Assessee's Contention: The appeal is not pressed in view of the low tax effect, as per Circular No. 17/2019. The assessee relied on the revised monetary limits for appeals before the High Court, which is Rs. 1,00,000. Revenue's Contention: The judgment does not record any specific contention from the revenue regarding the issue. However, the appeal was filed by the revenue, indicating an initial intention to pursue it. The court's decision to dispose of the appeal based on the circular implies the revenue did not press the appeal further.

AI-generated summary — verify with the full judgment below

C/TAXAP/485/2014 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 485 of 2014 ========================================================== COMMISSIONER OF INCOME TAX AHMEDABAD III Versus RUSHI AGROTECH MARKETING PVT. LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE UNSERVED(68) 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/485/2014 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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