COMMISSIONER OF INCOME TAX III vs. UNIPON (INDIA) LTD

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TAXAP/593/2012HC GujaratGJHC24042976201227 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 of Gujarat at Ahmedabad disposed of the Tax Appeal. The Court noted that the appeal was not pressed by the Revenue due to the low tax effect, in accordance with Circular No. 17/2019. This circular sets monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. The Court observed that in view of the aforesaid circular and the low tax effect, the appeal was disposed of accordingly. The Revenue was granted liberty to revive the appeal in case of any difficulty. No specific finding on the merits of the original assessment or the grounds of appeal was made, as the appeal was not pressed.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax III (the Revenue) against Unipon (India) Ltd (the assessee). The appeal was listed for an appropriate order. The High Court of Gujarat at Ahmedabad noted that the appeal was being considered in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which pertains to low tax effect cases. The appeal was not pressed by the Revenue due to this low tax effect, as per the policy outlined in the circular.

What were the issues?

1. Whether the appeal should be disposed of in accordance with Circular No. 17/2019 due to low tax effect? (Question of law) Assessee's Contention: The judgment does not record any specific contentions from the assessee. Revenue's Contention: The Revenue submitted that the appeal was not pressed in view of the low tax effect, having regard to Circular No. 17/2019. The circular provides monetary limits for filing appeals before various authorities, including the High Court (Rs. 1,00,00,000). The Revenue implicitly relied on this circular to withdraw or not press the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/593/2012 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 593 of 2012 ========================================================== COMMISSIONER OF INCOME TAX III Versus UNIPON (INDIA) LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR TEJ SHAH(5743) 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/593/2012 ORDER 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

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) Vahid Page 2 of 2

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