COMMISSIONER OF INCOME TAX GANDHINAGAR vs. DEEP COTTON INDUSTRIES

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TAXAP/610/2018HC GujaratGJHC24029121201807 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat held that the Tax Appeal is not pressed by the appellant (Revenue) due to the low tax effect, in accordance with Circular No. 17/2019 dated August 8, 2019. The court acknowledged the policy outlined in the circular, which sets monetary limits for appeals at various levels, including before the High Court. Consequently, the appeal was disposed of in view of the aforesaid circular. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue regarding the merits of the original assessment or the order under challenge was decided.

What were the facts?

The Commissioner of Income Tax, Gandhinagar, filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against an order concerning Deep Cotton Industries. The appeal was notified for passing an appropriate order due to its low tax effect. The court noted that the appeal was not pressed by the appellant (Revenue) in light of 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 court referred to the table within the circular, which specifies monetary limits for appeals before the Appellate Tribunal, High Court, and Supreme Court.

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 issued by the CBDT? Assessee's Contention: The judgment does not record any specific contentions made by the assessee. However, the appeal was not pressed by the Revenue, implying the assessee would likely support the dismissal on grounds of low tax effect. Revenue's Contention: The Revenue, through its counsel, stated that the appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019. The Revenue relied on the policy outlined in the said Circular regarding monetary limits for appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/610/2018 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 610 of 2018 ========================================================== COMMISSIONER OF INCOME TAX GANDHINAGAR Versus DEEP COTTON INDUSTRIES ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 RULE SERVED(64) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

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 8 th 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 8 th 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/610/2018 ORDER DATED: 07/01/2022 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. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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