COMMISSIONER OF INCOME TAX GANDHINAGAR vs. MOLEX MAFATLAL MICRON LTD

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TAXAP/509/2011HC GujaratGJHC24045045201107 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the appeal should be disposed of in view of the low tax effect, as per Circular No. 17/2019. The reasoning is that the monetary limits stipulated in the circular, which sets a limit of Rs. 1,00,00,000 for appeals before the High Court, have been considered. The appeal was not pressed by the Revenue on this basis. The operative direction is that the appeal is disposed of accordingly. Liberty is reserved for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was decided on merits.

What were the facts?

The appeal, R/TAXAP No. 509 of 2011, was filed by the Commissioner of Income Tax, Gandhinagar (the Revenue) against Molex Mafatlal Micron Ltd (the assessee). The appeal was notified for passing an appropriate order due to its 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 provides monetary limits for filing appeals. The appeal was disposed of accordingly, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? The Revenue argued that the appeal is not pressed due to the low tax effect, referencing 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/509/2011 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 509 of 2011 ========================================================== COMMISSIONER OF INCOME TAX GANDHINAGAR Versus MOLEX MAFATLAL MICRON LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

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 8 th 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 8 th 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/509/2011 ORDER DATED: 07/01/2022 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) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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