COMMISSIONER OF INCOME TAX II vs. GUJARAT AMBUJA COSTPIN LTD

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TAXAP/86/2013HC GujaratGJHC24043251201327 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 was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The circular specifies monetary limits for appeals before various authorities, including the High Court, where the limit is Rs. 1,00,00,000. Since the appeal was not pressed due to the low tax effect, the High Court disposed of the appeal accordingly. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific findings on the merits of the original assessment or the grounds of appeal were made, as the appeal was disposed of on procedural grounds related to the tax effect policy.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax II (the Revenue) against Gujarat Ambuja Costpin Ltd (the Assessee). The appeal was notified for an appropriate order by the Registry. The appeal was to be disposed of considering Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. The circular outlines monetary limits for filing appeals. The appeal was not pressed by the Revenue due to a low tax effect, as per the new policy reflected in the mentioned circular.

What were the issues?

The primary issue before the High Court was whether the appeal should be entertained given the low tax effect, in light of Circular No. 17/2019. The Revenue's contention was that the appeal was not pressed due to the low tax effect, aligning with the policy outlined in Circular No. 17/2019. The judgment does not record any specific arguments from the Assessee regarding the merits of the case, as the appeal was not pressed by the Revenue.

AI-generated summary — verify with the full judgment below

C/TAXAP/86/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 86 of 2013 ========================================================== COMMISSIONER OF INCOME TAX II Versus GUJARAT AMBUJA COSTPIN 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/86/2013 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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