COMMISSIONER OF INCOME TAX II vs. JYOTI DYEING AND PRINTING MILLS PVT LTD

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TAXAP/77/2013HC GujaratGJHC24043245201321 June 2022Bench: HONOURABLE THE ACTING CHIEF JUSTICE MR. JUSTICE A.J.DESAI,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal was not pressed in view of the low tax effect, as per Circular No. 17/2019. The circular establishes a monetary limit of Rs. 1,00,00,000/- for appeals before the High Court. Since the amount in dispute of Rs. 88,00,000/- is below this limit, the appeal is disposed of accordingly. The court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The principle established is that appeals below the prescribed monetary threshold in the relevant circular are not to be pursued.

What were the facts?

This is a Tax Appeal filed by the Commissioner of Income Tax II against Jyoti Dyeing and Printing Mills Pvt Ltd. The appeal concerns a low tax effect. The appeal was filed before the High Court of Gujarat at Ahmedabad. The amount in dispute is stated to be Rs. 88,00,000/-. The appeal was disposed of in view of Circular No. 17/2019, dated 8th August, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals.

What were the issues?

1. Whether the appeal is maintainable before the High Court given the monetary limit prescribed by Circular No. 17/2019? (Question of law) The Revenue argued that the appeal was not pressed due to low tax effect, referencing Circular No. 17/2019. The circular specifies a monetary limit of Rs. 1,00,00,000/- for appeals before the High Court. The amount involved in the present appeal is Rs. 88,00,000/-, which falls below this limit. The Revenue relied on Circular No. 17/2019. The judgment does not record any specific arguments from the assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/77/2013 ORDER DATED: 21/06/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 77 of 2013 ========================================================== COMMISSIONER OF INCOME TAX II Versus JYOTI DYEING AND PRINTING MILLS PVT LTD ========================================================== Appearance: MR HIRAK FOR MRS KALPANAK RAVAL(1046) for the Appellant(s) No. 1 MS SONAL D VYAS(999) for the Opponent(s) No. 1 ========================================================== CORAM:HONOURABLE MR. JUSTICE A.J.DESAI and HONOURABLE MR. JUSTICE BHARGAV D. KARIA

Date : 21/06/2022 ORAL ORDER (PER : HONOURABLE MR. JUSTICE A.J.DESAI) 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 follows: Sr.No. Appeals/SLPs in Income tax matters Monetary Limit (Rs.) Page 1 of 2

C/TAXAP/77/2013 ORDER DATED: 21/06/2022 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 involved in the present appeal is Rs. 88,00,000/-, in view of the aforesaid, the appeal is disposed of accordingly. 5. 5. In case of any difficulty, we reserve the liberty for the Revenue to revive the tax appeal. (A.J.DESAI, J) (BHARGAV D. KARIA, J) JYOTI V. JANI Page 2 of 2

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