COMMISSIONER OF INCOME TAX vs. MEGHMANI DYES AND INTERMEDIATES LTD

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TAXAP/600/2012HC GujaratGJHC24042979201227 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 disposed of the Tax Appeal as not pressed. The decision was based on the low tax effect of the appeal, in accordance with Circular No. 17/2019 issued by the Central Board of Direct Taxes (CBDT). This circular sets monetary limits for filing appeals. For appeals before the High Court, the limit is Rs. 1,00,00,000. The Court noted that if the Revenue faced any difficulty, they reserved the liberty to revive the tax appeal. No specific findings on the merits of the original dispute were made, as the appeal was withdrawn by the Revenue.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax (Revenue) against Meghmani Dyes and Intermediates Ltd (Assessee). The appeal was listed for an order due to its low tax effect. The High Court of Gujarat at Ahmedabad was considering the appeal, which stemmed from a prior order or action not detailed in this judgment. The procedural history relevant here is the listing of the appeal for final disposal, influenced by a CBDT Circular regarding monetary limits for filing appeals.

What were the issues?

1. Whether the appeal should be entertained given its low tax effect in light of CBDT Circular No. 17/2019? (Question of law) The Revenue's contention is that the appeal is not pressed due to the low tax effect, aligning with the policy outlined in Circular No. 17/2019. The Assessee's contentions are not recorded in the judgment. The Circular specifies monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/600/2012 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 600 of 2012 ========================================================== COMMISSIONER OF INCOME TAX Versus MEGHMANI DYES AND INTERMEDIATES LTD ========================================================== 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/600/2012 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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