COMMISSIONER OF INCOME TAX-II vs. MAHAVIR ROLLING MILLS LTD

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TAXAP/778/2011HC GujaratGJHC24045157201109 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 appellant (Revenue) due to the low tax effect, in accordance with Circular No. 17/2019 dated August 8, 2019. The circular establishes monetary limits for filing appeals before various authorities, with appeals before the High Court having a monetary limit of Rs. 1,00,00,000. 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. No specific findings were made on the merits of the original dispute, as the appeal was decided on procedural grounds related to the revenue's policy on low tax effect appeals.

What were the facts?

The appeal, C/TAXAP/778/2011, was filed by the Commissioner of Income Tax-II against Mahavir Rolling Mills Ltd. The appeal was listed for an order due to its low tax effect. The High Court of Gujarat at Ahmedabad was considering the appeal. The judgment notes that the appeal was not pressed by the appellant 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 pertains to revised monetary limits for filing appeals.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect as per the prevailing policy of the revenue, specifically Circular No. 17/2019? (Question of law and fact) The revenue, represented by Mrs. Mauna M. Bhatt, argued that the appeal was not pressed in view of the low tax effect and the guidelines provided in Circular No. 17/2019. The assessee, Mahavir Rolling Mills Ltd., was represented by Mr. Tushar P. Hemani and Ms. Vaibhavi K. Parikh. The judgment does not record any specific arguments from the assessee's side, but their presence indicates their participation in the proceedings.

AI-generated summary — verify with the full judgment below

C/TAXAP/778/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 778 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-II Versus MAHAVIR ROLLING MILLS LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR TUSHAR P HEMANI(2790) for the Opponent(s) No. 1 MS VAIBHAVI K PARIKH(3238) 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/778/2011 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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