COMMISSIONER OF INCOME TAX GANDHINAGAR vs. AASHADEEP INDUSTRIES

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TAXAP/607/2018HC GujaratGJHC24029089201831 July 2020Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH,HONOURABLE MR. JUSTICE J.B.PARDIWALA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court disposed of the Tax Appeal as not pressed. The decision was based on Circular No. 17/2019, which stipulates monetary limits for appeals. The Court noted that the appeal had a low tax effect, falling below the threshold for appeals before the High Court as per the said circular. The Court explicitly stated that the appeal was disposed of in view of the aforesaid circular. The Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific findings were made on the merits of the original assessment or the grounds of appeal.

What were the facts?

The Commissioner of Income Tax, Gandhinagar (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Aashadeep Industries (the Assessee). The appeal was filed for assessment year(s) not specified in the judgment. The appeal was listed for passing an appropriate order. The High Court noted that the appeal was notified due to a low tax effect. The Court referred to Circular No. 17/2019, dated 8th August 2019, issued by the Central Board of Direct Taxes, which provides monetary limits for filing appeals.

What were the issues?

1. Whether the Tax Appeal should be dismissed due to a low tax effect, in light of Circular No. 17/2019? Assessee's contention: The judgment does not record any specific contentions made by the Assessee. However, the appeal was not pressed by the Revenue due to low tax effect. Revenue's contention: The Revenue did not press the appeal in view of the low tax effect, as per Circular No. 17/2019. The Circular outlines monetary limits for appeals before various authorities, with appeals before the High Court having a limit of Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/607/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 607 of 2018 ========================================================== COMMISSIONER OF INCOME TAX GANDHINAGAR Versus AASHADEEP INDUSTRIES ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE SERVED(64) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA

Date : 31/07/2020

ORAL ORDER (PER : HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH) 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/607/2018 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 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. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) ALI ISTAYAK Page 2 of 2

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