COMMISSIONER OF INCOME TAX II vs. MADHUSUDAN INDUSTRIES LTD

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TAXAP/893/2013HC GujaratGJHC24043542201327 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat at Ahmedabad decided to dispose of the Tax Appeal. The decision was based on the Revenue's submission that the appeal was not pressed due to a low tax effect, in accordance with Circular No. 17/2019 dated August 8, 2019. This circular sets revised monetary limits for filing appeals, specifying Rs. 1,00,000 as the limit for appeals before the High Court. The Court noted that in case of any difficulty, the Revenue reserves the liberty to revive the tax appeal. No specific findings were made on the merits of the original dispute, 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 II (the Revenue) against Madhusudan Industries Ltd (the Assessee). The appeal was listed for an appropriate order due to low tax effect. The High Court of Gujarat at Ahmedabad was to consider the appeal. The appeal was notified for disposal in light of Circular No. 17/2019 dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals.

What were the issues?

1. Whether the Tax Appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? Assessee's Contention: The Assessee did not explicitly argue any points as the appeal was not pressed. However, the appeal's disposal was based on the Revenue's decision to not press it. Revenue's Contention: The Revenue stated that the appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019. The circular establishes monetary limits for appeals before various authorities, with a limit of Rs. 1,00,000 for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/893/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 893 of 2013 ========================================================== COMMISSIONER OF INCOME TAX II Versus MADHUSUDAN INDUSTRIES LTD ========================================================== 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 MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA

Date : 27/01/2020

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/893/2013 ORDER Sr. No. Appeals/SLPs in Incometax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,000 3 Before Supreme Court 2,00,000 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) (BHARGAV D. KARIA, J) CHANDRESH Page 2 of 2

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