COMMISSIONER OF INCOME TAX ROOM NO. 401, vs. SAURASHTRA CHEMICALS LTD

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TAXAP/554/2014HC GujaratGJHC24044877201427 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 tax appeal is not pressed by the appellant (Revenue) in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The circular establishes a monetary limit of Rs. 1,00,000 for appeals before the High Court. Consequently, the appeal is disposed of accordingly. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the assessment year(s) are not recorded in the judgment. No issue was expressly left undecided, as the appeal was disposed of on procedural grounds.

What were the facts?

The Commissioner of Income Tax (Revenue) filed a tax appeal before the High Court of Gujarat at Ahmedabad against Saurashtra Chemicals Ltd (Assessee). The appeal was notified for an order due to low tax effect. The High Court noted Circular No. 17/2019, dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, which sets monetary limits for appeals. The appeal was to be disposed of in light of this circular.

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) Assessee's Contention: The appeal is not pressed in view of the low tax effect, referencing Circular No. 17/2019. The assessee relies on the new policy reflected in the circular, which sets monetary limits for appeals before various authorities, including the High Court at Rs. 1,00,000. Revenue's Contention: The judgment does not record any specific contention from the revenue regarding the merits of the appeal. The revenue's action of filing the appeal implies a dispute, but their argument on the low tax effect is not detailed.

AI-generated summary — verify with the full judgment below

C/TAXAP/554/2014 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 554 of 2014 ========================================================== COMMISSIONER OF INCOME TAX ROOM NO. 401, Versus SAURASHTRA CHEMICALS 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/554/2014 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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