COMMISSIONER OF INCOME TAX-II vs. E INFOCHIPS LTD

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TAXAP/942/2009HC GujaratGJHC24040934200907 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 held that the tax appeal was not pressed by the Revenue due to its low tax effect, in accordance with Circular No. 17/2019. This circular outlines monetary limits for appeals before various judicial forums, including the High Court (Rs. 1,00,00,000). The court disposed of the appeal accordingly. The judgment explicitly states that the appeal is not pressed. The court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific findings on the merits of the original assessment or appeal were made, as the appeal was decided on procedural grounds related to the tax effect and administrative policy.

What were the facts?

The appeal, C/TAXAP/942/2009, was filed by the Commissioner of Income Tax-II (Revenue) against E Infochips Ltd (Assessee). The appeal was listed for an order due to its low tax effect. The High Court of Gujarat at Ahmedabad was considering the appeal. The procedural history indicates that the appeal was brought before the court for a decision. The judgment does not specify the assessment year(s) or the amount in dispute.

What were the issues?

The High Court was to decide whether to proceed with the appeal given its low tax effect. The Revenue, represented by Mr. Manish R. Bhatt, Senior Advocate, had filed the appeal. The Assessee was represented by Mrs. Swati Soparkar. The primary consideration for the court was 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. The Revenue's contention, implicitly, was to pursue the appeal, while the court's decision would be guided by the circular's provisions regarding low tax effect appeals. No specific legal provisions were debated, but the appeal's maintainability was in question based on administrative policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/942/2009 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 942 of 2009 ========================================================== COMMISSIONER OF INCOME TAX-II Versus E INFOCHIPS LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MRS SWATI SOPARKAR(870) 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 Page 1 of 2

C/TAXAP/942/2009 ORDER DATED: 07/01/2022 referred to above, the table for monetary limits is as follows:- 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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