COMMISSIONER OF INCOME TAX-III vs. M/S ASHOK ENGINEERING & FOUNDRY WORKS

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TAXAP/837/2011HC GujaratGJHC24045194201131 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 decided to dispose of the appeal in view of the low tax effect, as per Circular No. 17/2019. The Court noted the monetary limit for appeals before the High Court is Rs. 1,00,00,000 as per the said circular. Since the appeal was not pressed by the Revenue due to the low tax effect, the Court disposed of the appeal accordingly. The Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original assessment or the order under challenge was made, as the appeal was disposed of on procedural grounds related to the tax effect policy.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax-III (the Revenue) against M/s Ashok Engineering & Foundry Works (the assessee). The appeal was filed before the High Court of Gujarat at Ahmedabad. The appeal was notified for passing an appropriate order due to a low tax effect. The High Court considered Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The appeal was listed for disposal based on this circular.

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 assessee did not make any arguments as the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue submitted that the appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019, dated August 8, 2019. The circular provides monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. The Revenue relied on this circular to justify not pressing the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/837/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 837 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-III Versus M/S ASHOK ENGINEERING & FOUNDRY WORKS ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) 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/837/2011 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

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