COMMISSIONER OF INCOME TAX AHMEDABAD III vs. RAMDEV FOOD PRODUCTS PVT LTD

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TAXAP/767/2012HC GujaratGJHC24043046201227 November 2018Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE DR. JUSTICE A. P. THAKER2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal noted that it was an admitted position that the tax effect in the appeal was less than Rs. 50,00,000/-. In light of Circular No. 3/2018, which mandates that no appeal with a tax effect not exceeding Rs. 50,00,000/- shall be filed before the High Court and is retrospectively applicable to pending appeals, the learned senior standing counsel for the appellant (Revenue) did not press the present appeal. Consequently, the appeal was disposed of as not pressed. The court also provided a liberty to the appellant to seek revival of the appeal if there was any error in the computation of the tax effect or if the circular was otherwise not applicable.

What were the facts?

This case involves an appeal filed by the Commissioner of Income Tax, Ahmedabad III (the Revenue) against Ramdev Food Products Pvt Ltd (the Assessee). The appeal was before the High Court of Gujarat at Ahmedabad. The core of the matter revolved around the tax effect involved in the appeal. It was an admitted position between the parties that the tax effect was less than Rs. 50,00,000/-. This fact became crucial in deciding the fate of the appeal.

What were the issues?

1. Whether the appeal is maintainable before the High Court given the tax effect involved? This question arises from the applicability of Circular No. 3/2018 dated 11th July, 2018, issued by the Central Board of Direct Taxes. The Revenue argued that the appeal should not be pressed as the tax effect is below the monetary limit specified in the circular. The Assessee did not present any arguments as the appeal was not pressed by the Revenue.

AI-generated summary — verify with the full judgment below

C/TAXAP/767/2012 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 767 of 2012 ========================================================== COMMISSIONER OF INCOME TAX AHMEDABAD III Versus RAMDEV FOOD PRODUCTS PVT LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 MR B S SOPARKAR(6851) for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE DR.JUSTICE A. P. THAKER

Date : 27/11/2018

ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mrs. Mauna Bhatt, learned senior standing counsel for the appellant and Mr. B. S. Soparkar, learned advocate for the respondent. 2. It is an admitted position between the parties that the tax effect involved in this appeal is less than Rs.50,00,000/-. Under the circumstances, in the light of the Circular No.3/2018 dated 11th July, 2018 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes which provides that no appeal wherein the tax effect does not exceed the monetary limit of Rs.50,00,000/- shall be filed before the High Court and has also been made retrospectively applicable to pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. Page 1 of 2

C/TAXAP/767/2012 ORDER 3. The appeal is accordingly disposed of as not pressed in the light of the Circular dated 11th July, 2018. However, in case there is any error in the computation of the tax effect involved or if for any reason, the circular is not applicable, it would be open for the appellant to seek revival of the appeal. (HARSHA DEVANI, J) (A. P. THAKER, J) Z.G. SHAIKH Page 2 of 2

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