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

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TAXAP/838/2011HC GujaratGJHC24045195201127 November 2018Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE DR. JUSTICE A. P. THAKER2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal should be disposed of as not pressed. This decision was based on the admitted fact that the tax effect involved was less than Rs. 50,00,000/-. The Court relied on Circular No. 3/2018 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular mandates that appeals with a tax effect not exceeding Rs. 50,00,000/- should not be filed before the High Court and has retrospective applicability to pending appeals. Consequently, the learned senior standing counsel for the appellant (revenue) did not press the appeal. The operative direction was to dispose of the appeal as not pressed. The Court also noted that if there was any error in the computation of the tax effect or if the circular was not applicable for any reason, the appellant would be at liberty to seek revival of the appeal.

What were the facts?

This is an appeal filed by the Commissioner of Income Tax-III (the revenue) against M/s Ashok Engineering & Foundry Works (the assessee). The appeal is before the High Court of Gujarat at Ahmedabad. The assessment year(s) are not specified in the judgment. The order or action under challenge is the appeal itself, filed by the revenue. The procedural history is that the appeal was filed and is now being heard. A crucial fact admitted by both parties is that the tax effect involved in the appeal is less than Rs. 50,00,000/-.

What were the issues?

The primary issue before the High Court was whether the appeal filed by the revenue should be entertained given the tax effect involved. The Tribunal had to decide on the applicability of CBDT Circular No. 3/2018 to the present appeal. The revenue, through its learned senior standing counsel, argued that the appeal should not be pressed. The assessee, through its learned advocate, did not present any arguments as the revenue conceded the point based on the circular. The revenue's contention was based on CBDT Circular No. 3/2018 dated 11th July, 2018, which stipulates that no appeal where the tax effect does not exceed Rs. 50,00,000/- shall be filed before the High Court and is retrospectively applicable to pending appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/838/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 838 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-III Versus M/S ASHOK ENGINEERING & FOUNDRY WORKS ========================================================== Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 MR B S SOPARKAR(6851) for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE DR.JUSTICE A. P. THAKER

Date : 27/11/2018

ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mrs. Mauna Bhatt, learned senior standing counsel for the appellant and Mr. B. S. 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 applicable to pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. Page 1 of 2

C/TAXAP/838/2011 ORDER 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) (A. P. THAKER, J) B.U. PARMAR Page 2 of 2

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