COMMISSIONER OF INCOME TAX vs. VALSAD DISTRICT COOP. MILK PRODUCERS UNION LTD

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TAXAP/624/2012HC GujaratGJHC24042990201227 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 appeal is disposed of in view of the low tax effect and Circular No. 17/2019. The circular establishes monetary limits for appeals, and the appeal in question falls within the category where it is not pressed due to such limits. The court explicitly stated that the appeal is disposed of accordingly. Liberty was reserved for the Revenue to revive the tax appeal in case of any difficulty. The ratio decidendi is that appeals with a low tax effect, as defined by CBDT circulars, may be withdrawn or not pressed by the revenue, leading to their disposal by the court without a decision on the merits.

What were the facts?

This is a Tax Appeal filed by the Commissioner of Income Tax (Revenue) against Valsad District Co-operative Milk Producers Union Ltd (Assessee). The appeal was notified for an appropriate order due to low tax effect. The Revenue stated that the appeal is not pressed in view 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 appeal was disposed of accordingly, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law and fact) The Revenue argued that the appeal is not pressed in view of the low tax effect and Circular No. 17/2019. The circular specifies monetary limits for appeals before various authorities, including the High Court (Rs. 1,00,00,000). The appeal was notified for disposal based on this circular. The Assessee did not present any arguments as the appeal was not pressed by the Revenue.

AI-generated summary — verify with the full judgment below

C/TAXAP/624/2012 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 624 of 2012 ========================================================== COMMISSIONER OF INCOME TAX Versus VALSAD DISTRICT COOP. MILK PRODUCERS UNION LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE SERVED(64) 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 Page 1 of 2

C/TAXAP/624/2012 ORDER referred to above, the table for monetary limits is as follows: 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

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) Vahid Page 2 of 2

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