PRINCIPAL COMMISSIONER OF INCOME TAX-4, vs. TEXWORLD FASHIONS PVT. LTD.,

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TAXAP/912/2017HC GujaratGJHC24057186201707 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal held that the appeal is not pressed in view of the low tax effect, as per Circular No. 17/2019. The circular establishes monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. The reasoning is that appeals below this threshold, when considering the tax effect, are not to be pursued. Consequently, the appeal was disposed of accordingly. The Tribunal reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-4 against Texworld Fashions Pvt. Ltd. The assessment year(s) are not specified. The appeal challenges an order or action, but the specific nature of that order or action is not detailed. The appeal was notified for passing an appropriate order due to low tax effect. The procedural history indicates that the appeal was brought before the High Court of Gujarat at Ahmedabad.

What were the issues?

The Tribunal had to decide whether to proceed with the appeal given its low tax effect. The assessee's (Texworld Fashions Pvt. Ltd.) contention, as implied by the court's action, is that the appeal should not be pressed due to the low tax effect. The revenue's (Principal Commissioner of Income Tax-4) position is that the appeal is not pressed in view of the low tax effect. The decision hinges on the applicability of Circular No. 17/2019, dated 8th August, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/912/2017 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 912 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-4, Versus TEXWORLD FASHIONS PVT. LTD., ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) 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 MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

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 8 th 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 8 th 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/912/2017 ORDER DATED: 07/01/2022 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. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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