COMMISSIONER OF INCOME TAX-III vs. OME SHIV DYESTUFF PVT LTD

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TAXAP/823/2011HC GujaratGJHC24045184201109 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 held that the appeal is not pressed in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The Court noted the revised monetary limits for appeals, including Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal was disposed of accordingly. The Court also granted liberty to the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the original assessment year(s) were not recorded in the judgment.

What were the facts?

The Commissioner of Income Tax-III (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against an order concerning Ome Shiv Dyestuff Pvt Ltd (the assessee). The appeal was notified for an appropriate order due to low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular revised the monetary limits for filing appeals. The judgment notes the monetary limits for appeals before the Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). The appeal was disposed of accordingly, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law and fact) The Revenue argued that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019, which sets monetary limits for appeals. The Revenue contended that the appeal falls below the threshold specified in the circular for appeals before the High Court, which is Rs. 1,00,00,000. Therefore, it should be disposed of in line with the new policy. The assessee did not record any arguments in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/823/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 823 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-III Versus OME SHIV DYESTUFF PVT LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR TARAK DAMANI(6089) 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/823/2011 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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