COMMISSIONER OF INCOME TAX-III vs. NIRMA CONSUMER CARE LTD

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TAXAP/65/2011HC GujaratGJHC24044940201127 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 of Gujarat held that the Tax Appeal is not pressed and is disposed of in view of the low tax effect, as per Circular No. 17/2019 dated 8th August, 2019. The Circular outlines monetary limits for appeals before various authorities, with appeals before the High Court having a monetary limit of Rs. 1,00,00,000. The Court noted that the appeal was being disposed of in accordance with this new policy. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific findings were made on the merits of the original dispute.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax-III against Nirma Consumer Care Ltd. The appeal was listed for an appropriate order due to low tax effect. The appeal was filed against an order passed by an Income Tax Appellate Tribunal (though the specific Tribunal order is not detailed). The procedural history indicates that the appeal was brought before the High Court of Gujarat at Ahmedabad. The current proceeding is to dispose of the appeal in light of a Circular issued by the Government of India.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019 dated 8th August, 2019? (Question of law) Assessee's Contentions: The assessee did not explicitly argue any points as the appeal was not pressed. However, the appeal's disposal is based on the Circular, implying the assessee would benefit from its provisions. Revenue's Contentions: The revenue, through its counsel, did not press the appeal. This decision was made in consideration of Circular No. 17/2019, which sets monetary limits for filing appeals. The appeal's tax effect was below the prescribed limit for High Court appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/65/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 65 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-III Versus NIRMA CONSUMER CARE LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MRS SWATI SOPARKAR(870) 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 referred to above, the table for monetary limits is as follows: Page 1 of 2

C/TAXAP/65/2011 ORDER Sr. No. Appeals/SLPs in Incometax 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) (BHARGAV D. KARIA, J) aruna Page 2 of 2

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