COMMISSIONER OF INCOME TAX (TDS) vs. NATIONAL AGRICULTURE COOPERATIVE MARKETING FEDERATION

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TAXAP/122/2012HC GujaratGJHC24042767201227 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 of Gujarat held that the tax appeal should be disposed of as not pressed. The reasoning is based on Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular establishes monetary limits for filing appeals, with Rs. 1,00,00,000 being the threshold for appeals before the High Court. Since the tax effect in this appeal was low, the Revenue chose not to press it, adhering to the new policy. The operative direction is the disposal of the appeal. 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 on procedural grounds related to the tax effect policy.

What were the facts?

The Commissioner of Income Tax (TDS) filed a tax appeal before the High Court of Gujarat at Ahmedabad against an order concerning the National Agriculture Cooperative Marketing Federation. The appeal was listed for an appropriate order due to a low tax effect. The appeal was not pressed by the appellant (Revenue) in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines new monetary limits for filing appeals. The judgment notes the monetary limit for appeals before the High Court is Rs. 1,00,00,000.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? Assessee's Contention: The assessee (National Agriculture Cooperative Marketing Federation) did not explicitly present arguments in the provided text. However, the appeal was not pressed by the Revenue. The judgment references Circular No. 17/2019, which sets monetary limits for appeals. The appeal's low tax effect, below the threshold specified in the circular for High Court appeals, is the basis for not pressing it. Revenue's Contention: The Revenue, represented by the Commissioner of Income Tax (TDS), did not press the appeal. The reason cited is the low tax effect, aligning with the policy outlined in Circular No. 17/2019, which stipulates a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The Revenue sought to dispose of the appeal accordingly.

AI-generated summary — verify with the full judgment below

C/TAXAP/122/2012 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 122 of 2012 ========================================================== COMMISSIONER OF INCOME TAX (TDS) Versus NATIONAL AGRICULTURE COOPERATIVE MARKETING FEDERATION ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR UDAYAN P VYAS(1302) 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) 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 8th 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 8th 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/122/2012 ORDER Sr. No. Appeals/SLPs in Incometax 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) (BHARGAV D. KARIA, J) aruna Page 2 of 2

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