COMMISSIONER OF INCOME TAX vs. N.R. AGRAWAL INDUSTRIES LTD

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TAXAP/913/2014HC GujaratGJHC24045105201407 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court has disposed of the tax appeal. The primary reason for this disposal is that the appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. This circular sets monetary limits for filing appeals, and the appeal in question falls below the threshold for appeals before the High Court (Rs. 1,00,00,000). The Court noted that the appeal is disposed of accordingly. However, the Court has reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific findings on the merits of the case were made, as the appeal was not pressed.

What were the facts?

This is a Tax Appeal filed by the Commissioner of Income Tax (Revenue) against N.R. Agrawal Industries Ltd (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 Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular provides a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The judgment does not specify the assessment year(s) or the specific order under challenge, nor the amount in dispute, other than indicating it falls under the low tax effect category.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee has not made any explicit arguments recorded in the judgment. However, the appeal is being disposed of based on the Revenue's decision to not press it due to low tax effect. Revenue's Contention: The Revenue has not pressed the appeal in view of the low tax effect, as per Circular No. 17/2019, dated August 8, 2019. The circular establishes monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. The Revenue relies on this circular to justify the disposal of the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/913/2014 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 913 of 2014 ========================================================== COMMISSIONER OF INCOME TAX Versus N.R. AGRAWAL INDUSTRIES 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/913/2014 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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