COMMISSIONER OF INCOME TAX, GANDHINAGAR vs. M/S AASHADEEP INDUSTRIES

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TAXAP/608/2018HC GujaratGJHC24029127201831 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 noted that the appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The circular establishes monetary limits for appeals before various authorities, including High Courts (Rs. 1,00,00,000). Consequently, the Court disposed of the appeal accordingly. The Revenue was granted liberty to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original assessment or appeal was made, as the appeal was disposed of on procedural grounds related to the monetary limit policy.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax, Gandhinagar (the Revenue) against M/s Aashadeep Industries (the assessee). The appeal was listed for an order due to its low tax effect. The High Court of Gujarat at Ahmedabad was to pass an appropriate order, considering Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The appeal was filed for assessment year(s) not specified in the judgment.

What were the issues?

1. Whether the appeal should be entertained given the low tax effect, in light of Circular No. 17/2019? (Question of law and procedure) The Revenue argued that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The judgment does not record any specific arguments from the assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/608/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 608 of 2018 ========================================================== COMMISSIONER OF INCOME TAX, GANDHINAGAR Versus M/S AASHADEEP INDUSTRIES ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE NOT RECD BACK(63) 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/608/2018 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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