PR.COMMISSIONER OF INCOME TAX-VADODARA-1 vs. M/S.GUJARAT METAL CAST INDUSTRIES LTD.

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TAXAP/151/2016HC GujaratGJHC24051652201601 October 2019Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE MS. JUSTICE SANGEETA K. VISHEN2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted that the tax effect in the appeals was less than Rs. 1,00,00,000/-. Citing CBDT Circular No. 17 of 2019, which mandates that appeals with a tax effect not exceeding Rs. 1,00,00,000/- should not be filed before the High Court and that this circular is retrospectively applicable to pending appeals, the Court accepted the appellant's submission. Consequently, the appeals were disposed of as not pressed. The Court also provided a liberty to the appellant to seek revival of the appeals if there was any error in the computation of the tax effect or if the circular was not applicable for any reason.

What were the facts?

The appeals were filed by the Principal Commissioner of Income Tax against M/s. Gujarat Metal Cast Industries Ltd. The appeals challenged orders passed by the Income Tax Appellate Tribunal (ITAT). The tax effect involved in these appeals was stated by the appellant's counsel to be less than Rs. 1,00,00,000/-. The appeals were listed for hearing before the High Court of Gujarat.

What were the issues?

1. Whether the appeals, having a tax effect below Rs. 1,00,00,000/-, should be pressed before the High Court, considering CBDT Circular No. 17 of 2019. Assessee's contention: The assessee's counsel did not make any specific arguments as the appellant's counsel indicated they would not press the appeals. Revenue's contention: The learned senior standing counsel for the appellant (Revenue) stated that the tax effect involved in the appeals is less than Rs. 1,00,00,000/-. In light of CBDT Circular No. 17 of 2019, which stipulates that no appeal with a tax effect not exceeding Rs. 1,00,00,000/- shall be filed before the High Court and which is retrospectively applicable to pending appeals, the Revenue does not press the present appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/151/2016 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 151 of 2016 With R/TAX APPEAL NO. 641 of 2016 ========================================================== PR.COMMISSIONER OF INCOME TAX-VADODARA-1 Versus M/S.GUJARAT METAL CAST INDUSTRIES LTD. ========================================================== Appearance: MR.VARUN K.PATEL(3802) 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 MS.JUSTICE HARSHA DEVANI and HONOURABLE MS. JUSTICE SANGEETA K. VISHEN

Date : 01/10/2019 ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mr.Varun K. Patel, learned senior standing counsel for the appellant and Mr.Tushar P. Hemani, learned senior advocate with Ms.Vaibhavi K. Parikh, learned advocate for the respondent. 2. Mr. Varun K. Patel, learned senior standing counsel for the appellant, has stated that the tax effect involved in these appeal are less than Rs.1,00,00,000/-. Under the circumstances, in the light of the Circular No.17 of 2019 dated 08.08.2019 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, which provides Page 1 of 2

C/TAXAP/151/2016 ORDER that no appeal wherein the tax effect does not exceed the monetary limit of Rs.1,00,00,000/- shall be filed before the High Court and which has also been made retrospectively applicable to pending appeals, the learned senior standing counsel for the appellant does not press the present appeals. 3. The appeals are, accordingly, disposed of as not pressed in light of the Circular dated 08.08.2019. However, in case there is any error in the computation of the tax effect involved or if, for any reason, the Circular is not applicable, it would be open for the appellant to seek revival of the appeal/s. (HARSHA DEVANI, J) (SANGEETA K. VISHEN,J) RAVI P. PATEL Page 2 of 2

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