PRINCIPAL COMMISSIONER OF INCOME TAX VADODARA 1 vs. GUJARAT STATE FERTILIZERS AND CHEMICALS LTD

PDF · subscribers
TAXAP/932/2018HC GujaratGJHC24035739201801 October 2019Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE MS. JUSTICE SANGEETA K. VISHEN2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal (High Court) decided that the appeal should be disposed of as not pressed. The reasoning was based on the appellant's submission regarding the tax effect being below the monetary limit stipulated in CBDT Circular No. 17 of 2019. This circular, which prohibits filing appeals with a tax effect not exceeding Rs. 1,00,00,000/- before the High Court and is retrospectively applicable, led the appellant's counsel to not press the appeal. The ratio decidendi is that appeals falling below the prescribed monetary limit, as per the relevant circular, are not to be pursued. The operative direction was to dispose of the appeal as not pressed. The court also noted that if there was any error in the computation of the tax effect or if the circular was not applicable for any reason, the appellant could seek revival of the appeal. No issue was expressly left undecided.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Vadodara 1, against Gujarat State Fertilizers and Chemicals Ltd. The assessment year(s) are not specified. The appeal challenges an order or action, the nature of which is not detailed, passed by an authority below. The tax effect involved in the appeal was stated to be less than Rs. 1,00,00,000/-. The procedural history is that the appeal was filed before the High Court of Gujarat at Ahmedabad.

What were the issues?

1. Whether the present appeal, with a tax effect not exceeding Rs. 1,00,00,000/-, should be entertained by the High Court, in light of CBDT Circular No. 17 of 2019. Assessee's Contention: The learned senior standing counsel for the appellant (Revenue) stated that the tax effect involved is less than Rs. 1,00,00,000/-. Relying on Circular No. 17 of 2019 dated 08.08.2019, which mandates that no appeal with a tax effect not exceeding Rs. 1,00,00,000/- shall be filed before the High Court and which is retrospectively applicable to pending appeals, the appellant does not press the present appeal. Revenue's Contention: The judgment records no specific argument from the respondent (assessee).

AI-generated summary — verify with the full judgment below

C/TAXAP/932/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 932 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX VADODARA 1 Versus GUJARAT STATE FERTILIZERS AND CHEMICALS LTD ========================================================== Appearance: MR.VARUN K.PATEL(3802) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE MS. JUSTICE SANGEETA K. VISHEN

Date : 01/10/2019 ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mr.Varun K. Patel, learned senior standing counsel for the appellant and Mr.Manish J. Shah, learned advocate for the respondent. 2. Mr. Varun K. Patel, learned senior standing counsel for the appellant, has stated that the tax effect involved in this appeal is less than Rs.1,00,00,000/-. Under the circumstances, in the light of the Circular No.17 of 2019 dated 08.08.2019 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, which provides that no appeal wherein the tax effect does not exceed the monetary limit of Rs.1,00,00,000/- shall be filed before the High Court and which has also been made retrospectively applicable to Page 1 of 2

C/TAXAP/932/2018 ORDER pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. 3. The appeal is, accordingly, disposed of as not pressed in light of the Circular dated 08.08.2019. However, in case there is any error in the computation of the tax effect involved or if, for any reason, the Circular is not applicable, it would be open for the appellant to seek revival of the appeal. (HARSHA DEVANI, J) (SANGEETA K. VISHEN,J) RAVI P. PATEL Page 2 of 2

Recent GST High Court judgments

Search GST case law →