COMMISSIONER OF INCOME TAX-IV vs. ZEN INDUSTRIES PVT LTD

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TAXAP/583/2012HC GujaratGJHC24042974201227 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 appeal is not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Since the tax effect of this appeal falls below this limit, the Revenue chose not to press the appeal. The Court disposed of the appeal accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect amount was not recorded in the judgment.

What were the facts?

This matter concerns Tax Appeal No. 583 of 2012 filed by the Commissioner of Income Tax-IV (the Revenue) against Zen Industries Pvt Ltd (the assessee). The appeal was listed for an appropriate order by the Gujarat High Court. The appeal was notified due to its low tax effect. The decision to dispose of the appeal was made in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which outlines monetary limits for filing appeals.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contentions: The assessee did not explicitly make any arguments in the provided text. However, the appeal was not pressed by the Revenue due to low tax effect. Revenue's Contentions: The Revenue stated that the appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019, dated August 8, 2019. The Revenue relied on the monetary limits specified in the circular for appeals before the High Court, which is Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/583/2012 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 583 of 2012 ========================================================== COMMISSIONER OF INCOME TAX-IV Versus ZEN INDUSTRIES PVT LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) 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 Page 1 of 2

C/TAXAP/583/2012 ORDER referred to above, the table for monetary limits is as follows: Sr. No. Appeals/SLPs in Income Tax 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

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) Vahid Page 2 of 2

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