COMMISSIONER OF INCOME TAX GANDHINAGAR vs. AASHADEEP INDUSTRIES

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TAXAP/609/2018HC GujaratGJHC24029119201827 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 held that the Tax Appeal was not pressed by the Revenue due to the low tax effect, in accordance with Circular No. 17/2019. This circular sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The Court observed that the appeal was notified for disposal based on this policy. Consequently, the appeal was disposed of accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original dispute was made as the appeal was not pressed.

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 notified for an appropriate order due to low tax effect. The Court referred to Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which revised monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The appeal was disposed of in light of this circular.

What were the issues?

1. Whether the Tax Appeal should be dismissed on the grounds of low tax effect as per Circular No. 17/2019? (Question of law) Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The appeal was not pressed by the Revenue. Revenue's Contention: The Revenue did not press the appeal in view of the low tax effect, referencing Circular No. 17/2019, dated August 8, 2019. The circular establishes monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. The Revenue relied on this policy to withdraw the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/609/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 609 of 2018 ========================================================== COMMISSIONER OF INCOME TAX GANDHINAGAR Versus 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 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/609/2018 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) KUMAR ALOK Page 2 of 2

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