COMMISSIONER OF INCOME TAX CENTRAL-II vs. M/S ELLORA TIMES LTD (NOW AJANTA LTD)

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TAXAP/2624/2010HC GujaratGJHC24046453201009 September 2019Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages

AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that both tax appeals were to be disposed of in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The reasoning was based on the revised monetary limits for appeals before the High Court, which is Rs. 1,00,00,000. The Court noted that the appeals were not pressed by the Revenue on this ground. The operative direction was to dispose of both appeals accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeals in case of any difficulty. No specific issue was left undecided; the appeals were disposed of based on the circular.

What were the facts?

The Gujarat High Court was considering two tax appeals, R/TAXAP/2624/2010 and R/TAXAP/1020/2010, filed by the Commissioner of Income Tax Central-II against M/s Ellora Times Ltd (now Ajanta Ltd). The appeals were listed for appropriate orders due to low tax effect. The Court noted that these appeals were to be disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals. The Court also mentioned that the Revenue had the liberty to revive the tax appeals in case of any difficulty.

What were the issues?

1. Whether the tax appeals should be disposed of in accordance with Circular No. 17/2019 due to low tax effect? (Question of law) The Assessee (Revenue) argued that both tax appeals were not pressed due to the low tax effect, referencing Circular No. 17/2019. The Assessee relied on the monetary limits specified in the circular for appeals before the High Court, which is Rs. 1,00,00,000. The judgment does not record any specific arguments from the Revenue.

AI-generated summary — verify with the full judgment below

C/TAXAP/2624/2010 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 2624 of 2010 With R/TAX APPEAL NO. 1020 of 2010 ========================================================== COMMISSIONER OF INCOME TAX CENTRAL-II Versus M/S ELLORA TIMES LTD (NOW AJANTA LTD) ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 DARSHAN R PATEL(8486) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO

Date : 09/09/2019

ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 1. The Registry has notified the captioned appeals for the purpose of passing appropriate orders. The captioned appeals have been notified because of the low tax effect. These appeals are 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. Both the tax appeals are 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 Page 1 of 2

C/TAXAP/2624/2010 ORDER to above, the table for monetary limits is as follows: Sr. No. Appeals/SLPs in Incometax 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 4. In view of the aforesaid, both the appeals are disposed of accordingly. In case of any difficulty, we reserve the liberty for the Revenue to revive the tax appeal. (J. B. PARDIWALA, J) (A. C. RAO, J) aruna Page 2 of 2

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