PRINCIPAL COMMISSIONER OF INCOME TAX-3 vs. INDO GERMAN TOOL ROOM,

PDF · subscribers

TAXAP/978/2018HC GujaratGJHC24044659201827 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The Gujarat High Court held that the Tax Appeal was not pressed by the Revenue. This decision was made in consideration of Circular No. 17/2019, dated August 8, 2019, which establishes monetary limits for filing appeals. The appeal was deemed to have a low tax effect, falling below the threshold of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal was disposed of accordingly. The court reserved the liberty for the Revenue to revive the Tax Appeal in case of any difficulty. The ratio decidendi is that appeals with a low tax effect, as defined by CBDT circulars, may not be pressed by the Revenue, leading to their disposal without a decision on merits. No specific issue was decided on merits.

What were the facts?

The Principal Commissioner of Income Tax-3 (Revenue) filed a Tax Appeal before the Gujarat High Court against an order concerning Indo German Tool Room (Assessee). The appeal was notified for passing an appropriate order due to a 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 said circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, considering Circular No. 17/2019? (Question of law) Assessee's Contentions: The judgment does not record any specific contentions made by the assessee. However, the appeal was not pressed by the Revenue, implying the assessee would have benefited from this stance. Revenue's Contentions: The Revenue did not press the appeal. This decision was based on Circular No. 17/2019, which sets monetary limits for filing appeals before various authorities, including the High Court. The appeal was deemed to have a low tax effect, falling below the threshold stipulated in the circular for appeals before the High Court (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/978/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 978 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX3 Versus INDO GERMAN TOOL ROOM, ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE UNSERVED(68) 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/978/2018 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

Recent GST High Court judgments

Search GST case law →