THE COMMISSIONER OF INCOME TAX-IV vs. VIKSHARA TRADING & INVESTMENT PVT LTD

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TAXAP/739/2011HC GujaratGJHC24045138201109 September 2019Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat at Ahmedabad held that the Tax Appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The Court noted the revised monetary limits for appeals before the High Court, which is Rs. 1,00,00,000. Consequently, the appeal was disposed of accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was given on the merits of the original dispute, as the appeal was not pressed.

What were the facts?

The Commissioner of Income Tax-IV (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Vikshara Trading & Investment Pvt Ltd (the assessee). The appeal was notified for an appropriate order due to low tax effect. The appeal was to be disposed of in light of Circular No. 17/2019 dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular outlines new monetary limits for filing appeals. The appeal was not pressed by the Revenue in view of this circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in light of Circular No. 17/2019 dated August 8, 2019? (Question of law) Assessee's Contention: The assessee did not make any specific arguments recorded in the judgment. However, the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue submitted that the appeal was not pressed in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. This circular sets revised monetary limits for filing appeals before various authorities, including the High Court, which was Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/739/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 739 of 2011 ========================================================== THE COMMISSIONER OF INCOME TAX-IV Versus VIKSHARA TRADING & INVESTMENT PVT LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR KETAN H SHAH(2705) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO

Date : 09/09/2019

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/739/2011 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) (A. C. RAO, J) aruna Page 2 of 2

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