COMMISSIONER OF INCOME TAX GANDHINAGAR vs. MOLEX MAFATLAL MICRON LTD

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TAXAP/508/2011HC GujaratGJHC24045044201131 July 2020Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH,HONOURABLE MR. JUSTICE J.B.PARDIWALA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat decided to dispose of the appeal in accordance with Circular No. 17/2019. This circular establishes monetary limits for appeals before various authorities, including the High Court, where the limit is Rs. 1,00,00,000. Since the appeal had a low tax effect, it was not pressed by the Revenue. The court disposed of the appeal accordingly. The reasoning is based on the policy outlined in the circular, which aims to streamline litigation by setting financial thresholds. The operative direction is the disposal of the appeal. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax, Gandhinagar, against Molex Mafatlal Micron Ltd. The appeal was listed for an order by the High Court of Gujarat at Ahmedabad. The primary reason for the listing was the low tax effect involved in the appeal. The court was to consider the implications of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals.

What were the issues?

1. Whether the appeal should be entertained given the low tax effect, in light of Circular No. 17/2019? (Question of law) The Revenue (Commissioner of Income Tax) argued that the appeal was not pressed due to the low tax effect, as per the guidelines in Circular No. 17/2019. The judgment does not record any specific arguments from the Assessee (Molex Mafatlal Micron Ltd.) on this point, other than their presence as the opponent.

AI-generated summary — verify with the full judgment below

C/TAXAP/508/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 508 of 2011 ========================================================== COMMISSIONER OF INCOME TAX GANDHINAGAR Versus MOLEX MAFATLAL MICRON LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA

Date : 31/07/2020

ORAL ORDER (PER : HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH) 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. Page 1 of 2

C/TAXAP/508/2011 ORDER 3. According to the new policy as reflected from the Circular 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. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) ALI ISTAYAK Page 2 of 2

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