COMMISSIONER OF INCOME TAX VADODARA -2 vs. DINESH MILLS LIMITED

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TAXAP/800/2017HC GujaratGJHC24057116201709 April 2019Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted that it is an admitted position that the tax effect in the appeal is less than Rs. 50,00,000/-. In light of Circular No. 3/2018, which stipulates 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 stated that the appeal is not pressed. 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 is any error in the computation of the tax effect or if the circular is not applicable for any reason.

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Vadodara - 2, against Dinesh Mills Limited. The appeal was before the High Court of Gujarat at Ahmedabad. It is an admitted position between the parties that the tax effect involved in this appeal is less than Rs. 50,00,000/-. The appeal was heard on April 9, 2019.

What were the issues?

1. Whether the present appeal, involving a tax effect less than Rs. 50,00,000/-, is maintainable before the High Court in light of Circular No. 3/2018 dated July 11, 2018, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. The appellant (Revenue) contended that the tax effect is below the monetary limit specified in the Circular, and therefore, the appeal is not pressed. The respondent (Assessee) did not present any arguments as recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/800/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 800 of 2017 ========================================================== COMMISSIONER OF INCOME TAX VADODARA -2 Versus DINESH MILLS LIMITED ========================================================== Appearance: MS.KALPANA RAVAL for the Appellant(s) No. 1 MR B S SOPARKAR(6851) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE MR. JUSTICE BHARGAV D. KARIA

Date : 09/04/2019

ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Ms. Kalpana Raval, learned senior standing counsel for  the   appellant   and   Mr.   Bandish   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 Page 1 of 2

C/TAXAP/800/2017 ORDER applicable to pending appeals, the learned senior standing counsel   for   the   appellant   does   not   press   the   present appeal. 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) (BHARGAV D. KARIA, J) RAGHUNATH R NAIR Page 2 of 2

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