COMMISSIONER OF INCOME TAX III vs. HEUBACH COLOUR PVT LTD

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TAXAP/701/2013HC GujaratGJHC24043472201320 October 2021Bench: HONOURABLE THE CHIEF JUSTICE MS. JUSTICE SONIA GOKANI,HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court decided to dispose of the appeal based on the low tax effect, in accordance with Circular No. 17/2019. The Court noted the monetary limits for appeals before different judicial forums as per the Circular, with appeals before the High Court having a monetary limit of Rs. 1,00,00,000/-. Since the penalty involved in this appeal was Rs. 30,76,080/-, which is below the prescribed limit, the appeal was disposed of accordingly. The Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original dispute before the ITAT was made, as the appeal was not pressed on grounds of low tax effect.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax III (the Revenue) against Heubach Colour Pvt Ltd (the Assessee). The appeal pertains to an assessment year not explicitly stated in the judgment. The order or action under challenge is the Revenue's appeal against a decision of the Income Tax Appellate Tribunal (ITAT). The amount in dispute, stated as the penalty involved, is Rs. 30,76,080/-. The procedural history indicates that the appeal was filed before the High Court of Gujarat.

What were the issues?

1. Whether the appeal should be entertained by the High Court given the monetary limit prescribed by Circular No. 17/2019 (mixed law and fact, concerning the applicability of CBDT Circulars). The Revenue argued that the appeal was not pressed due to low tax effect, referencing Circular No. 17/2019. The Assessee's contentions are not recorded in the judgment. The judgment does not explicitly state the specific issue decided by the ITAT that led to this appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/701/2013 ORDER DATED: 20/10/2021 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 701 of 2013 ========================================================== COMMISSIONER OF INCOME TAX III Versus HEUBACH COLOUR PVT LTD ========================================================== Appearance: MR.VARUN K.PATEL(3802) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MS. JUSTICE SONIA GOKANI and HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK

Date : 20/10/2021 ORAL ORDER (PER : HONOURABLE MS. JUSTICE SONIA GOKANI) 1. The captioned appeal concerns 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 Page 1 of 2

C/TAXAP/701/2013 ORDER DATED: 20/10/2021 follows: Sr. No. Appeals/SLPs in Income tax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal Rs. 50,00,000/- 2 Before High Court Rs. 1,00,00,000/- 3 Before Supreme Court Rs. 2,00,00,000/- 4. Since the amount of penalty involved in the present appeal is Rs. 30,76,080/-, in view of the aforesaid, the appeal is disposed of accordingly. 5. In case of any difficulty, we reserve the liberty for the Revenue to revive the tax appeal. (SONIA GOKANI, J) (HEMANT M. PRACHCHHAK,J) Bhoomi Page 2 of 2

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