PRINCIPAL COMMISSIONER OF INCOME TAX- 3 vs. INDO GERMAN TOOL ROOM

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TAXAP/975/2018HC GujaratGJHC24044665201827 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 Tax Appeal was not pressed by the Revenue in view of the low tax effect, as per CBDT Circular No. 17/2019. The circular establishes a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Since the appeal fell below this threshold, it was disposed of accordingly. The court reserved the liberty for the Revenue to revive the Tax Appeal in case of any difficulty. The ratio is that appeals with a low tax effect, below the limits prescribed by CBDT circulars, are to be disposed of without a detailed examination of the merits.

What were the facts?

The Principal Commissioner of Income Tax-3 (Revenue) filed a Tax Appeal before the Gujarat High Court against an order of the Income Tax Appellate Tribunal (ITAT). The appeal was notified for passing an appropriate order due to a 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 (CBDT). This circular outlines revised monetary limits for filing appeals. The appeal was disposed of based on these revised limits.

What were the issues?

1. Whether the appeal should be dismissed due to a low tax effect, considering CBDT Circular No. 17/2019? (Question of law and fact, concerning the applicability of the circular). Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. The judgment notes that the appeal was 'not pressed'. Revenue's Contention: The Revenue argued that the appeal should be disposed of in view of the low tax effect and the revised monetary limits stipulated in CBDT Circular No. 17/2019, dated August 8, 2019. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/975/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 975 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 3 Versus INDO GERMAN TOOL ROOM ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(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) 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 of Direct Taxes, New Delhi. 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 of Direct Taxes, New Delhi. Page 1 of 2

C/TAXAP/975/2018 ORDER 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 Monetary Limits (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.) /MOINUDDIN Page 2 of 2

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