COMMISSIONER OF INCOME TAX-III vs. M/S GAYATRI BUILDING MATERIAL SUPPLIERS

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TAXAP/559/2011HC GujaratGJHC24045065201107 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 due to its low tax effect, in accordance with Circular No. 17/2019. The reasoning is based on the policy outlined in the circular, which sets monetary limits for appeals. For appeals before the High Court, the monetary limit is Rs. 1,00,00,000. Since the tax effect in this appeal is low, it falls within the scope of the circular's guidelines for not pursuing appeals. The operative direction is that the appeal is disposed of accordingly. The court reserves 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-III (the Revenue) against M/s Gayatri Building Material Suppliers (the assessee). The appeal was listed for an appropriate order by the High Court of Gujarat. The appeal was notified 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 sets monetary limits for filing appeals. The appeal is disposed of based on 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 assessee has not made any specific arguments recorded in the judgment. However, the appeal is not pressed by the Revenue due to low tax effect, implying the assessee would benefit from this policy. Revenue's Contention: The Revenue contends that the appeal should be disposed of in view of the low tax effect, citing Circular No. 17/2019. This circular provides revised monetary limits for filing appeals before various authorities, including the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/559/2011 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 559 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-III Versus M/S GAYATRI BUILDING MATERIAL SUPPLIERS ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) 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 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/559/2011 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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