COMMISSIONER OF INCOME TAX-1 vs. M/S.AAHAR PRODUCTS PVT.LTD.(NOW KNOWN AS ANIL NUTRIENTS LTD)

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TAXAP/566/2015HC GujaratGJHC24047885201527 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 due to the low tax effect, in accordance with Circular No. 17/2019. The circular establishes monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. Since the tax effect in this appeal was below the prescribed limit, the Revenue chose not to pursue it. 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. No specific finding on the merits of the original dispute was made, as the appeal was decided 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-1 (the Revenue) against M/s. Aahar Products Pvt. Ltd. (now Anil Nutrients Ltd.) (the assessee). The appeal was listed for an appropriate order by the High Court of Gujarat at Ahmedabad. The appeal was notified due to a low tax effect. The Court referred to Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The appeal was disposed of in light of this circular and the low tax effect.

What were the issues?

1. Whether the appeal should be dismissed due to a low tax effect, as per Circular No. 17/2019? (Question of law) The Revenue argued that the appeal was not pressed in view of the low tax effect and the policy outlined in Circular No. 17/2019. The circular specifies monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. The judgment does not record any specific arguments from the assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/566/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 566 of 2015 ========================================================== COMMISSIONER OF INCOME TAX-1 Versus M/S.AAHAR PRODUCTS PVT.LTD.(NOW KNOWN AS ANIL NUTRIENTS LTD) ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE UNSERVED(68) 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/566/2015 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 Income-tax matters Monetray

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) PALAK Page 2 of 2

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