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

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TAXAP/758/2017HC GujaratGJHC24057097201727 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 disposed of the tax appeal. The Court noted that the appeal was 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. This circular establishes monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. The appeal was disposed of accordingly. The Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the case was made as the appeal was not pressed.

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 passing an appropriate order due to low tax effect. The appeal was to be disposed of in accordance with Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The appeal was not pressed by the appellant in view of 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 appeal is not pressed by the appellant (Revenue) due to the low tax effect, in line with Circular No. 17/2019. The circular specifies monetary limits for appeals, and the tax effect in this case falls below the threshold for appeals before the High Court. Revenue's contention: Not recorded in the judgment. The judgment states the appeal is not pressed by the appellant (Revenue).

AI-generated summary — verify with the full judgment below

C/TAXAP/758/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 758 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/758/2017 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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