PRINCIPAL COMMISSIONER OF INCOME TAX 5 vs. ZAVERI AND CO. EXPORTS

PDF · subscribers
TAXAP/575/2015HC GujaratGJHC24047892201527 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 decided to dispose of the Tax Appeal as not pressed. The reasoning is based on the Revenue's submission that the appeal was not being pressed due to the low tax effect, as per Circular No. 17/2019. This circular establishes monetary limits for appeals. The appeal falls within these limits, prompting the Revenue not to pursue it. The Court noted the monetary limits for appeals before the Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). The operative direction is the disposal of the appeal accordingly. The Court reserved 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 Principal Commissioner of Income Tax 5 against Zaveri and Co. Exports. The appeal was listed for an order due to its low tax effect. The appeal was not pressed by the Revenue in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The appeal is being disposed of based on this circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in light of Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee has not made any explicit arguments recorded in the judgment. The appeal is being disposed of based on the Revenue's stance and the circular. Revenue's Contention: The Revenue submitted that the appeal is not pressed due to the low tax effect, referencing Circular No. 17/2019. The circular specifies monetary limits for appeals before various authorities, including High Courts, with an upper limit of Rs. 1,00,00,000 for High Court appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/575/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 575 of 2015 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 5 Versus ZAVERI AND CO. EXPORTS ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR RK PATEL(1082) 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. Page 1 of 2

C/TAXAP/575/2015 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 Monetray

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) (BHARGAV D. KARIA, J) PALAK Page 2 of 2

Recent GST High Court judgments

Search GST case law →