COMMISSIONER OF INCOME TAX (TDS) vs. GUJARAT FLUOROCHEMICALS LIMITED

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TAXAP/584/2014HC GujaratGJHC24044890201427 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. The reasoning was based on the Revenue's submission that the appeal was not pressed due to a low tax effect, aligning with Circular No. 17/2019. This circular establishes a monetary limit of Rs. 1,00,000 for appeals before the High Court. The Tribunal noted the policy change and the specific monetary limit applicable. The operative direction is the disposal of the appeal. The court also 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 Commissioner of Income Tax (TDS) against Gujarat Fluorochemicals Limited. The appeal was listed for an appropriate order due to a low tax effect. The appeal was to be disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines new monetary limits for filing appeals. The appeal was not pressed by the appellant in view of the low tax effect as per the aforementioned circular.

What were the issues?

1. Whether the appeal should be dismissed due to a low tax effect, as per Circular No. 17/2019? The Revenue's contention is that the appeal is not pressed in view of the low tax effect and the policy outlined in Circular No. 17/2019, which sets monetary limits for appeals before the High Court at Rs. 1,00,000. The Assessee has not recorded any specific arguments in this regard, but the appeal is being disposed of based on the Revenue's submission and the circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/584/2014 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 584 of 2014 ========================================================== COMMISSIONER OF INCOME TAX (TDS) Versus GUJARAT FLUOROCHEMICALS LIMITED ========================================================== 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/584/2014 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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