COMMISSIONER OF INCOME TAX - I vs. KEJRIWAL INDUSTRIES PVT. LTD.

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TAXAP/431/2014HC GujaratGJHC24044824201414 October 2019Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE MS. JUSTICE SANGEETA K. VISHEN2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal held that the appeal is disposed of as not pressed. This decision was based on the Revenue's submission that the tax effect involved was less than Rs. 1,00,00,000/-. The Tribunal relied on CBDT Circular No. 17 of 2019, which mandates that appeals with a tax effect below Rs. 1,00,00,000/- should not be filed before the High Court and that this circular applies retrospectively to pending appeals. The reasoning is that the Revenue, being bound by its own circular, chose not to press the appeal. The ratio decidendi is that appeals falling below the monetary limit specified in a CBDT circular, and where the appellant chooses not to press the appeal on that basis, will be dismissed as not pressed. The operative direction is that the appeal is disposed of as not pressed. The judgment notes that if there is any error in the computation of the tax effect or if the circular is not applicable for any reason, the appellant can seek revival of the appeal. No issue was expressly left undecided.

What were the facts?

The appeal was filed by the Commissioner of Income Tax - I (Revenue) against Kejriwal Industries Pvt. Ltd. (Assessee). The assessment year(s) are not specified. The appeal challenges an order or action by an unspecified authority. The amount in dispute is stated to be less than Rs. 1,00,00,000/-. The procedural history involves the Revenue filing this appeal before the High Court of Gujarat at Ahmedabad.

What were the issues?

1. Whether the present appeal, with a tax effect below Rs. 1,00,00,000/-, is maintainable before the High Court in light of CBDT Circular No. 17 of 2019. The Revenue's contention, as presented by Mrs. Kalpana K. Raval, learned senior standing counsel, is that the tax effect in this appeal 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 appeal. The Assessee's contentions are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/431/2014 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 431 of 2014 ========================================================== COMMISSIONER OF INCOME TAX - I Versus KEJRIWAL INDUSTRIES PVT. LTD. ========================================================== Appearance: MRS KALPANAK RAVAL(1046) for the Appellant(s) No. 1 MR RK PATEL(1082) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE MS. JUSTICE SANGEETA K. VISHEN

Date : 14/10/2019 ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mrs.Kalpana K. Raval, learned senior standing counsel for the appellant and Mr.R.K. Patel, learned advocate for the respondent. 2. Mrs.Kalpana K. Raval, learned senior standing counsel for the appellant, has stated that the tax effect involved in this appeal is 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 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 Page 1 of 2

C/TAXAP/431/2014 ORDER has also been made retrospectively applicable to pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. 3. The appeal is, 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. (HARSHA DEVANI, J) (SANGEETA K. VISHEN,J) RAVI P. PATEL Page 2 of 2

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