COMMISSIONER OF INCOME TAX - I vs. THE ARVIND MILLS LTD (SUCCESSOR TO ERSTWHILE ROHIT MILLS LTD

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TAXAP/1556/2010HC GujaratGJHC24046232201027 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 is not pressed by the Revenue due to the low tax effect, in accordance with Circular No. 17/2019 dated August 8, 2019. The circular establishes a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal is disposed of based on this policy. The court also reserved the liberty for the Revenue to revive the tax appeal if any difficulty arises. No specific findings on the merits of the original dispute were made.

What were the facts?

The Commissioner of Income Tax - I (the Revenue) filed a tax appeal before the High Court of Gujarat at Ahmedabad against The Arvind Mills Ltd (successor to Erstwhile Rohit Mills Ltd). The appeal was notified for an appropriate order due to low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019 dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals. The appeal was disposed of accordingly, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect as per Circular No. 17/2019? The Revenue argued that the appeal is not pressed in view of the low tax effect, citing Circular No. 17/2019. The assessee's contentions are not recorded in the judgment. The Circular No. 17/2019 sets out monetary limits for appeals before various authorities, including the High Court, where the limit is Rs. 1,00,00,000. The judgment does not specify the assessment year(s) or the specific tax effect in dispute.

AI-generated summary — verify with the full judgment below

C/TAXAP/1556/2010 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1556 of 2010 ========================================================== COMMISSIONER OF INCOME TAX - I Versus THE ARVIND MILLS LTD (SUCCESSOR TO ERSTWHILE ROHIT MILLS LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR VIJAY S RANJAN(6126) 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. Page 1 of 2

C/TAXAP/1556/2010 ORDER 3. 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 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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