PR. COMMISSIONER OF INCOME TAX-3, AHMEDABAD vs. OASIS TEXTILES LTD

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TAXAP/619/2017HC GujaratGJHC24057038201707 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the appeal should be disposed of in view of the low tax effect, as per Circular No. 17/2019. The reasoning is that the Revenue has chosen not to press the appeal, aligning with the policy of not pursuing matters below certain monetary thresholds. The operative direction is to dispose of the appeal accordingly. The Revenue is granted liberty to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the appeal was disposed of on procedural grounds related to the Revenue's policy.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-3, Ahmedabad (the Revenue) against Oasis Textiles Ltd (the Assessee). The appeal was listed for an appropriate order due to its low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals by the Revenue before various appellate authorities, including the High Court. The appeal was disposed of based on this policy.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? (Question of law). The Revenue argued that the appeal is not pressed due to the low tax effect, referencing Circular No. 17/2019, which sets monetary limits for appeals. The Assessee's contentions are not recorded in the judgment, as the rule was unserved.

AI-generated summary — verify with the full judgment below

C/TAXAP/619/2017 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 619 of 2017 ========================================================== PR. COMMISSIONER OF INCOME TAX-3, AHMEDABAD Versus OASIS TEXTILES LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 RULE UNSERVED(68) 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/619/2017 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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