COMMISISONER OF INCOME TAX-6 vs. BHAVNAGAR VEGETABLES PRODUCTS LTD

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TAXAP/342/2015HC GujaratGJHC24047791201527 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 decided to dispose of the tax appeal. The reasoning was that the appeal was not pressed by the appellant (Revenue) in view of the low tax effect, as per Circular No. 17/2019. The circular establishes monetary limits for appeals, with Rs. 1,00,000 being the limit for appeals before the High Court. Since the appeal fell under this category and was not pressed, it was disposed of accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue regarding the merits of the assessment was decided.

What were the facts?

The Gujarat High Court was considering a Tax Appeal filed by the Commissioner of Income Tax-6 against Bhavnagar Vegetables Products Ltd. The appeal was notified for an appropriate order due to a low tax effect. The court was to dispose of the appeal in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines new monetary limits for filing appeals. The appeal was not pressed by the appellant in view of this circular and the stipulated monetary limit for appeals before the High Court, which is Rs. 1,00,000.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed. However, the appeal was disposed of based on the revenue's decision to not press it due to the low tax effect, aligning with the circular. Revenue's Contention: The revenue, represented by Mrs. Mauna M. Bhatt, did not press the appeal. This decision was based on Circular No. 17/2019, which sets monetary limits for appeals. The appeal was considered to have a low tax effect, falling below the threshold for appeals before the High Court as specified in the circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/342/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 342 of 2015 ========================================================== COMMISISONER OF INCOME TAX-6 Versus BHAVNAGAR VEGETABLES PRODUCTS LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR TUSHAR P HEMANI(2790) for the Opponent(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) 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/342/2015 ORDER Sr. No. Appeals/SLPs in Incometax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,000 3 Before Supreme Court 2,00,000 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) CHANDRESH Page 2 of 2

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