COMMISSIONER OF INCOME TAX GANDHINAGAR vs. PRAKASH INDUSTRIES

PDF · subscribers
TAXAP/619/2018HC GujaratGJHC24029105201807 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 at Ahmedabad decided to dispose of the Tax Appeal. The Court noted that the appeal was not pressed by the appellant (Commissioner of Income Tax) due to its low tax effect, in line with Circular No. 17/2019. This circular establishes monetary limits for appeals before various judicial forums, including the High Court. Given that the appeal's tax effect was below the threshold stipulated by the circular for appeals before the High Court, the appeal was disposed of accordingly. The Court explicitly reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No decision was made on the substantive merits of the tax dispute.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax, Gandhinagar, against Prakash Industries. The appeal was listed for an appropriate order by the High Court of Gujarat at Ahmedabad. The appeal was notified due to its low tax effect. The Court considered Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular outlines monetary limits for appeals before the Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). The present appeal was being disposed of in light of this circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, considering Circular No. 17/2019? (Question of law) Assessee's Contention: The appeal is not pressed in view of the low tax effect, as per Circular No. 17/2019. The circular provides updated monetary limits for filing appeals, and this appeal falls within the category where such appeals are to be disposed of on this basis. Revenue's Contention: No specific contention is recorded for the revenue regarding the merits of the appeal. The revenue's representative was present, and the appeal was being considered based on the circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/619/2018 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 619 of 2018 ========================================================== COMMISSIONER OF INCOME TAX GANDHINAGAR Versus PRAKASH 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/619/2018 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

Recent GST High Court judgments

Search GST case law →