PRINCIPAL COMMISSIONER OF INCOME TAX 4 vs. VISHAL FABRICS PVT LTD

PDF · subscribers
TAXAP/967/2018HC GujaratGJHC24035869201807 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 decided to dispose of the appeal in accordance with Circular No. 17/2019, dated August 8, 2019, due to the low tax effect. The Revenue did not press the appeal. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal was disposed of on this basis. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original assessment or the order under challenge was made, as the appeal was not pressed.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax 4 (the Revenue) against Vishal Fabrics Pvt Ltd (the Assessee). The appeal was notified for an appropriate order due to its low tax effect. The appeal was to be disposed of in accordance with 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 appeal was not pressed by the Revenue in view of this circular.

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 judgment does not record any specific contentions from the assessee. The assessee was represented by Mr. Sudhir M Mehta and Ms. Shailee S Mehta. Revenue's Contention: The Revenue, represented by Mr. Manish R. Bhatt, Senior Advocate, did not press the appeal due to the low tax effect, citing Circular No. 17/2019, dated August 8, 2019. This circular establishes monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/967/2018 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 967 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 4 Versus VISHAL FABRICS PVT LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR SUDHIR M MEHTA(2058) for the Opponent(s) No. 1 MS SHAILEE S MEHTA(5873) 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/967/2018 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

Recent GST High Court judgments

Search GST case law →