PR. COMMISSIONER OF INCOME TAX-3 vs. M/S INDO GERMAN TOOL ROOM

PDF · subscribers
TAXAP/811/2017HC GujaratGJHC24057124201731 July 2020Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH,HONOURABLE MR. JUSTICE J.B.PARDIWALA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted that the appeal was notified due to its low tax effect and was to be disposed of in light of Circular No. 17/2019. The Court explicitly stated that the tax appeal is not pressed by the Revenue in view of the low tax effect, referencing the aforementioned Circular. The Circular provides a table of monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. The Court disposed of the appeal accordingly. Liberty was reserved for the Revenue to revive the tax appeal in case of any difficulty. No specific issue regarding the merits of the assessment was decided.

What were the facts?

This matter concerns Tax Appeal No. 811 of 2017 filed before the High Court of Gujarat at Ahmedabad. The appeal was filed by the Principal Commissioner of Income Tax-3 (Revenue) against M/s Indo German Tool Room (Assessee). The appeal was listed for an appropriate order. The appeal was notified due to its low tax effect. The Court was to consider Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in light of Circular No. 17/2019? (Question of law). Assessee's Contention: The appeal is not pressed by the Revenue due to the low tax effect, as per Circular No. 17/2019. The judgment does not record any specific arguments made by the assessee, but the context implies their agreement with the Revenue's stance on not pressing the appeal. Revenue's Contention: The appeal is not pressed by the Revenue in view of the low tax effect, having regard to Circular No. 17/2019, dated August 8, 2019. The Revenue relies on the policy outlined in this Circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/811/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 811 of 2017 ========================================================== PR. COMMISSIONER OF INCOME TAX-3 Versus M/S INDO GERMAN TOOL ROOM ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MS VAIBHAVI K PARIKH(3238) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA

Date : 31/07/2020

ORAL ORDER (PER : HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH) 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. Page 1 of 2

C/TAXAP/811/2017 ORDER 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.) 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. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) ALI ISTAYAK Page 2 of 2

Recent GST High Court judgments

Search GST case law →