PRINCIPAL COMMISSIONER OF INCOME TAX 4 vs. VIMALACHAL PRINT AND PACK PVT LTD

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TAXAP/544/2018HC GujaratGJHC24029302201807 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal was not pressed by the appellant (Revenue) due to the low tax effect, in accordance with Circular No. 17/2019. The circular establishes monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. Since the appeal was not pressed based on this policy, the Court disposed of the appeal accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute.

What were the facts?

The appeal, C/TAXAP/544/2018, was filed by the Principal Commissioner of Income Tax 4 against Vimalachal Print and Pack Pvt Ltd. The appeal was listed for passing an appropriate order. The primary reason for the listing was the low tax effect, which was to be considered in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board Direct Taxes. This circular outlines monetary limits for filing appeals. The appeal was not pressed by the appellant due to this low tax effect.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not present any arguments as the appeal was not pressed by the revenue. The judgment does not record any specific arguments from the assessee. Revenue's Contention: The revenue, through its counsel, stated that the appeal is not pressed in view of the low tax effect, referencing Circular No. 17/2019. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The revenue implicitly relied on this circular to justify not pursuing the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/544/2018 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 544 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 4 Versus VIMALACHAL PRINT AND PACK PVT LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 RULE SERVED(64) 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/544/2018 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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