PRINCIPAL COMMISSIONER OF INCOME TAX -4 vs. VARDHMAN STAMPINGS PVT. LTD.

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TAXAP/975/2017HC GujaratGJHC24057223201707 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 is not pressed by the Revenue due to the low tax effect, in accordance with Circular No. 17/2019. The Court noted the monetary limits prescribed by the circular for appeals before the High Court, which is Rs. 1,00,00,000. Since the tax effect in this appeal falls below this limit, the appeal is disposed of accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific decision was made on the merits of the original dispute before the ITAT.

What were the facts?

The Principal Commissioner of Income Tax - 4 (the Revenue) filed this Tax Appeal before the High Court of Gujarat at Ahmedabad. The appeal was against an order passed by the Income Tax Appellate Tribunal (ITAT). The assessee is Vardhman Stampings Pvt. Ltd. The appeal was notified for an appropriate order due to low tax effect, in line with Circular No. 17/2019 dated August 8, 2019, issued by the CBDT. This circular sets monetary limits for filing appeals. The appeal is to be disposed of based on this circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. The judgment does not record any specific arguments from the assessee. Revenue's Contention: The Revenue submitted that the appeal is not pressed in view of the low tax effect, referencing Circular No. 17/2019, dated August 8, 2019. The circular establishes monetary limits for appeals before various authorities, including the High Court (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/975/2017 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 975 of 2017 With R/TAX APPEAL NO. 109 of 2019 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX -4 Versus VARDHMAN STAMPINGS 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 SERVED BY AFFIX. (R)(67) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

COMMON 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/975/2017 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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