COMMISSIONER OF INCOME TAX vs. M/S FAIRDEAL FILAMENTS LTD

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TAXAP/46/2011HC GujaratGJHC24044933201114 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 in light of the submission by the Revenue's learned senior standing counsel regarding the tax effect being less than Rs. 1,00,00,000/-, and considering Circular No. 17 of 2019 dated 08.08.2019 which makes such appeals non-maintainable before the High Court, the appeal was not pressed. The Tribunal accordingly disposed of the appeal as not pressed. The reasoning was based on the applicability of the CBDT circular to pending appeals. The Tribunal also granted liberty to the appellant to seek revival of the appeal if there was any error in the computation of the tax effect or if the circular was not applicable for any reason. No specific issue was left undecided, as the appeal was disposed of on a procedural ground.

What were the facts?

This is a Tax Appeal filed by the Commissioner of Income Tax (Revenue) against M/s Fairdeal Filaments Ltd (Assessee). The appeal challenges an order or action that is not specified in the provided text. The assessment year(s) are also not mentioned. The procedural history is limited to the fact that the appeal is before the High Court of Gujarat. The material fact that emerges is the tax effect involved in the appeal, which the Revenue states is less than Rs. 1,00,00,000/-.

What were the issues?

The Tribunal did not have to decide any substantive issues of law or fact. The primary question that arose was whether the appeal should be pressed in light of the tax effect and a relevant circular. The Revenue, through its learned senior standing counsel, argued that the tax effect was below the threshold stipulated in Circular No. 17 of 2019 dated 08.08.2019. This circular mandates that no appeal with a tax effect not exceeding Rs. 1,00,00,000/- shall be filed before the High Court and is applicable retrospectively to pending appeals. The Assessee's contentions are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/46/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 46 of 2011 ========================================================== COMMISSIONER OF INCOME TAX Versus M/S FAIRDEAL FILAMENTS LTD ========================================================== Appearance: MRS KALPANAK RAVAL(1046) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) 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.Manish J. Shah, 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 has also been made retrospectively applicable to Page 1 of 2

C/TAXAP/46/2011 ORDER 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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