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

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TAXAP/1304/2018HC GujaratGJHC24067285201827 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 held that the Tax Appeal was not pressed by the Revenue in view of the low tax effect and having regard to Circular No. 17/2019 dated August 8, 2019. The Court noted the revised monetary limits for appeals before the High Court as Rs. 1,00,00,000. 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. No specific issue was decided on merits; the disposal was based on administrative policy and the Revenue's decision not to press the appeal.

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 listed for an appropriate order due to a low tax effect. The High Court noted that 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 revised monetary limits for filing appeals. The appeal was not pressed by the Revenue in view of this circular and the low tax effect.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019, dated August 8, 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 stated that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The circular establishes monetary limits for appeals before various authorities, including the High Court (Rs. 1,00,00,000). The Revenue implicitly argued that the appeal fell below this threshold or was otherwise covered by the policy outlined in the circular, making it not worth pursuing.

AI-generated summary — verify with the full judgment below

C/TAXAP/1304/2018                                                                                                 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO.  1304 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 3 Versus INDO GERMAN TOOL ROOM ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MS VAIBHAVI K PARIKH(3238) 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/1304/2018                                                                                                 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

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