COMMISSIONER OF INCOME TAX -I vs. ASIAN TUBES LTD.

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TAXAP/634/2014HC GujaratGJHC24044908201407 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 court noted the monetary limits specified in the circular for appeals before the High Court, which is Rs. 1,00,00,000. Since the appeal was not pressed, the court disposed of the appeal accordingly. The reasoning was based on the stated policy of the government to avoid litigation where the tax effect is below a certain threshold. The operative direction was to dispose of the appeal. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

The appeal, Commissioner of Income Tax -I versus Asian Tubes Ltd., was filed by the Revenue. The High Court of Gujarat at Ahmedabad was considering the appeal. The appeal was notified for passing an appropriate order due to a low tax effect. The court referred to Circular No. 17/2019, dated 8th August 2019, issued by the Central Board of Direct Taxes, which provides monetary limits for filing appeals. The appeal was not pressed by the appellant (Revenue) in view of this circular and the low tax effect. The court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in light of Circular No. 17/2019? The Revenue argued that the appeal was not pressed due to the low tax effect, as per Circular No. 17/2019, which sets monetary limits for appeals before various authorities, including the High Court. The Revenue relied on the policy reflected in this circular. The Assessee's contentions are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/634/2014 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 634 of 2014 ========================================================== COMMISSIONER OF INCOME TAX -I Versus ASIAN TUBES LTD. ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) 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/634/2014 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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