COMMISSIONER OF INCOME TAX GANDHINAGAR vs. PRAKASH INDUSTRIES

PDF · subscribers
TAXAP/620/2018HC GujaratGJHC24029104201807 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 was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The reasoning provided is that the monetary limit for appeals before the High Court is Rs. 1,00,00,000, and the current appeal falls under this category, making it eligible for disposal based on the circular. The High Court disposed of the appeal accordingly. The operative direction is that the appeal is disposed of. The court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the appeal was disposed of based on the stated policy.

What were the facts?

The Commissioner of Income Tax, Gandhinagar (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad, challenging an order related to Prakash Industries (the assessee). The appeal was notified for passing 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 monetary limits for filing appeals. The High Court noted the monetary limit for appeals before the High Court is Rs. 1,00,00,000.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? 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/620/2018 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 620 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 NOT RECD BACK(63) 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/620/2018 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 →