PRINCIPAL COMMISSIONER OF INCOME TAX 3 vs. RAINBOW PAPERS LIMITED

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TAXAP/944/2018HC GujaratGJHC24036049201827 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court noted that the Tax Appeal was notified for passing an appropriate order due to low tax effect, in accordance with Circular No. 17/2019 dated August 8, 2019. The Revenue stated that the appeal was not pressed in view of the low tax effect as per this circular. The circular provides a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the Court disposed of the appeal accordingly. The Court also reserved liberty for the Revenue to revive the Tax Appeal in case of any difficulty. No specific issue was left undecided; the appeal was disposed of based on the Revenue's decision not to press it.

What were the facts?

The Principal Commissioner of Income Tax 3 (Revenue) filed a Tax Appeal before the Gujarat High Court against Rainbow Papers Limited (Assessee). The appeal was notified for passing an appropriate order due to low tax effect. The appeal was to be disposed of in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The appeal was not pressed by the Revenue in view of the low tax effect as per the aforementioned circular.

What were the issues?

1. Whether the appeal should be disposed of due to low tax effect, considering Circular No. 17/2019 (Question of law and fact). Assessee's contentions: The assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. However, the appeal's disposal was based on the Revenue's decision. Revenue's contentions: The Revenue did not press the appeal due to the low tax effect, referencing Circular No. 17/2019 dated August 8, 2019. This circular establishes monetary limits for appeals before various authorities, including the High Court, which was Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/944/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 944 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 3 Versus RAINBOW PAPERS LIMITED ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR TEJ SHAH(5743) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA

Date : 27/01/2020

ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 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 8th August 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, New Delhi. This Tax Appeal is not pressed in view of the low tax effect having regard to the Circular No.17/2019, dated 8th August 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, New Delhi. Page 1 of 2

C/TAXAP/944/2018 ORDER According to the new policy, as reflected from the Circular referred to above, the table for monetary limits is as follows : Sr. No. Appeals/SLPs in Income-tax matters Monetary Limits (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000 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.) (BHARGAV D. KARIA, J.) /MOINUDDIN Page 2 of 2

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