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

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TAXAP/914/2014HC GujaratGJHC24045106201407 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 noted that the appeal was listed for passing an appropriate order due to its low tax effect, in accordance with Circular No. 17/2019. The Court observed that the appeal was not pressed by the Revenue in view of this circular and the monetary limits prescribed therein. The circular establishes a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the Court disposed of the appeal accordingly. The Revenue was granted liberty to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original dispute was made, as the appeal was not pressed.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax (Revenue) against N.R. Agrawal Industries Ltd (Assessee). The appeal was listed for an appropriate order by the Gujarat High Court. The appeal was notified due to its low tax effect. The Court considered Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The appeal was not pressed by the Revenue in light of this circular and its monetary limits.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law and fact) The Revenue argued that the appeal was not pressed in view of the low tax effect, citing Circular No. 17/2019. The circular provides monetary limits for appeals before various authorities, including High Courts. The Revenue relied on the policy reflected in this circular. The Assessee's arguments are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/914/2014 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 914 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/914/2014 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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