PRINCIPAL COMMISSIONER OF INCOME TAX – 4 vs. SHREE SWATI TEXDYES PVT. LTD

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TAXAP/969/2017HC GujaratGJHC24057219201707 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 of Gujarat disposed of the Tax Appeal as not pressed. The decision was based on the low tax effect of the appeal, in accordance with Circular No. 17/2019 issued by the Central Board of Direct Taxes (CBDT). The circular specifies monetary limits for appeals, and the appeal in question fell below the threshold for filing before the High Court. The Court noted the table of monetary limits provided in the circular, which states that appeals before the High Court have a monetary limit of Rs. 1,00,00,000. The Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute.

What were the facts?

The Principal Commissioner of Income Tax, the appellant, filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Shree Swati Texdyes Pvt. Ltd., the respondent. The appeal was notified for an appropriate order due to its low tax effect. The appeal was filed against an order passed by an authority, the details of which are not specified in the judgment. The procedural history indicates that the appeal was listed for final disposal.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, in light of Circular No. 17/2019 issued by the CBDT? The Assessee (Revenue) argued that the appeal is not pressed due to the low tax effect, referencing Circular No. 17/2019. The judgment does not record any arguments from the Respondent (assessee). The circular provides monetary limits for filing appeals before various authorities, including the High Court, which is Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/969/2017 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 969 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX â 4 Versus SHREE SWATI TEXDYES PVT. LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) 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/969/2017 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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