PRINCIPAL COMMISSIONER OF INCOME TAX-7 vs. MAKSON FOODS PVT. LTD

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TAXAP/757/2017HC GujaratGJHC24057096201727 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 tax appeal is not pressed by the appellant (Principal Commissioner of Income Tax-7) in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The circular establishes monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. Since the tax effect in this case was below this limit, the appeal was not pressed. The Court disposed of the appeal accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The ratio is that appeals with a low tax effect, below the prescribed monetary limits in CBDT circulars, may not be pressed and can be disposed of accordingly.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-7 against Makson Foods Pvt. Ltd. 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 Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals before various authorities. The appeal was not pressed by the appellant due to the low tax effect as per the aforementioned circular.

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) Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed. The appeal was disposed of based on the revenue's stance and the circular. Revenue's Contention: The revenue submitted that the appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019, dated August 8, 2019. The circular sets monetary limits for appeals, and the current appeal falls below the threshold for High Court appeals (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/757/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 757 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-7 Versus MAKSON FOODS PVT. LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR VIJAY S RANJAN(6126) 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/757/2017 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) KUMAR ALOK Page 2 of 2

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