THE PRINCIPAL COMMISSIONER OF INCOME TAX-1 vs. M/S CHAMUNDA PHARMA MACHINERY PVT. LTD

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TAXAP/457/2019HC GujaratGJHC24043478201927 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 disposed of the Tax Appeal. The decision was based on the Revenue's decision not to press the appeal in accordance with Circular No. 17/2019 dated August 8, 2019. This circular sets monetary limits for appeals, and the appeal was deemed to have a low tax effect, falling below the Rs. 1,00,00,000 threshold for appeals before the High Court. The Court explicitly stated that the appeal was disposed of in view of the aforesaid circular. Liberty was reserved for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute.

What were the facts?

The Principal Commissioner of Income Tax-1 (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against M/s Chamunda Pharma Machinery Pvt. Ltd. (Assessee). 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 Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The High Court reserved liberty for the Revenue to revive the appeal in case of any difficulty.

What were the issues?

1. Whether the Tax Appeal is maintainable before the High Court given the monetary limits prescribed by Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes (CBDT)? Assessee's Contention: The assessee did not explicitly present arguments in the provided text. However, the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue did not press the appeal due to the low tax effect, referencing Circular No. 17/2019. This circular establishes monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. The Revenue implicitly acknowledged that the tax effect in this case fell below the prescribed threshold for pursuing the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/457/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 457 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX-1 Versus M/S CHAMUNDA PHARMA MACHINERY PVT. LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 HIREN J TRIVEDI(8808) 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/457/2019 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) GIRISH Page 2 of 2

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