COMMISSIONER OF INCOME TAX II vs. MADHUSUDAN INDUSTRIES LTD

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TAXAP/894/2013HC GujaratGJHC24043543201327 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 decided to dispose of the tax appeal in accordance with Circular No. 17/2019, dated August 8, 2019, due to the low tax effect. The circular establishes a monetary limit of Rs. 1,00,000 for appeals before the High Court. Since the tax effect in this appeal falls below this threshold, the appeal was not pressed by the Revenue. The Court noted that if the Revenue faces any difficulty, they reserve the liberty to revive the tax appeal. The specific tax effect and the assessment year(s) are not recorded in the judgment.

What were the facts?

This is a Tax Appeal filed by the Commissioner of Income Tax II (the Revenue) against Madhusudan Industries Ltd (the Assessee). The appeal was notified for an appropriate order due to low tax effect. The appeal is being disposed of 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 new monetary limits for filing appeals. The monetary limit for appeals before the High Court is Rs. 1,00,000.

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 in view of the low tax effect, as per Circular No. 17/2019. The circular specifies a monetary limit of Rs. 1,00,000 for appeals before the High Court, and the tax effect in this appeal is below this limit. Revenue's Contention: Not recorded in the judgment. The judgment states the appeal is not pressed by the Revenue.

AI-generated summary — verify with the full judgment below

C/TAXAP/894/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 894 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/894/2013 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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