PRINCIPAL COMMISSIONER OF INCOME TAX-3 vs. NIRMA CHEMICALS WORKS LTD.

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TAXAP/598/2017HC GujaratGJHC24057026201727 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 noted that the appeal was listed for an appropriate order, specifically due to its low tax effect. The Court referred to Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which establishes monetary limits for appeals. The Revenue explicitly stated that the appeal was not pressed in view of this circular and the low tax effect. Consequently, the Court disposed of the appeal accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific findings on the merits of the case were made as the appeal was not pressed.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-3 (the Revenue) against Nirma Chemicals Works Ltd. (the Assessee). The appeal was listed for an appropriate order. The appeal was notified for hearing due to its low tax effect. The Court was to consider Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The appeal was not pressed by the Revenue in light of this circular and its monetary limits.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019 issued by the CBDT? Assessee's Contentions: The Assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. However, the context implies the Assessee would benefit from the dismissal based on the low tax effect. Revenue's Contentions: The Revenue stated that the appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019, dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board Direct Taxes. The circular outlines monetary limits for appeals before various authorities, including the High Court at Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/598/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 598 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-3 Versus NIRMA CHEMICALS WORKS LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR ASHISH P KHARE(3851) 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/598/2017 ORDER Sr. No. Appeals/SLPs in Incometax 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) (BHARGAV D. KARIA, J) GIRISH Page 2 of 2

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