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Gujarat High Court

The Commissioner Of Income Tax-I vs Deepak Nitrite ... on 8 June, 2016

Author: Ks Jhaveri

Bench: Ks Jhaveri, G.R.Udhwani

                   O/TAXAP/512/2008                                                     ORDER




                   IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                                   TAX APPEAL NO. 512 of 2008

         ==========================================================
                    THE COMMISSIONER OF INCOME TAX-I....Appellant(s)
                                       Versus
                         DEEPAK NITRITE LIMITED....Opponent(s)
         ==========================================================
         Appearance:
         MRS MAUNA M BHATT, ADVOCATE for the Appellant(s) No. 1
         MR MANISH J SHAH, ADVOCATE for the Opponent(s) No. 1
         ==========================================================

          CORAM: HONOURABLE MR.JUSTICE KS JHAVERI
                 and
                 HONOURABLE MR.JUSTICE G.R.UDHWANI

                                           Date : 08/06/2016


                                             ORAL ORDER

(PER : HONOURABLE MR.JUSTICE KS JHAVERI)

1. This   Tax   Appeal   u/s.260A   of   the   Income   Tax   Act,   1961   is  preferred against the order dated 09.04.2007 passed by the Income Tax  Appellate  Tribunal,  Ahmedabad  Bench  "A" in ITA No. 1646/Ahd/2004  raising the following substantial question of law for our consideration:

"(A) Whether on the facts and in the circumstances of the case, the   Tribunal   was   right   in   law   in   holding   that   the   provision   made   for   difference between the book value and the realizable value of the plant  by sheer estimate, without any scientific or intelligible basis, was not a  'provision'   in   terms   of   clause   (c)   of   the   Explanation   below   Section   115JA(2) of the Income­tax Act or, in any case, was not a 'reserve' in  terms of clause (b) of the Explanation? 
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HC-NIC Page 1 of 2 Created On Fri Jun 10 01:40:35 IST 2016 O/TAXAP/512/2008 ORDER (B) Whether,  on  the facts  and in  the  circumstances of  the case,  the   Tribunal   was   right   in   law   in   seeking   to   derive   the   meaning   of   the   expression   used   in   the   Explanation   below   Section   115JA(2)   of   the   Income­tax Act from rule 7 in Schedule­VI of the Companies Act when   the scheme and the purpose of the two are quite different?"

2. It may be noted that the monetary limits and other conditions for  filing departmental appeals (in Income­tax matters) before the Appellate  Tribunal, High Courts and SLP before the Supreme Court have been  revised by the Board. Insofar as High Courts are concerned, it has been  decided by the Board vide Circular No.21/2015 dated 10.12.2015 that  no appeals  shall be preferred in cases where the tax effect does not  exceed the monetary limit of Rs.20.00 Lacs.

3. In view of the above Circular, this appeal does not deserve to be  entertained. Consequently, the appeal is dismissed.

(K.S.JHAVERI, J.) (G.R.UDHWANI, J.) niru* Page 2 of 2 HC-NIC Page 2 of 2 Created On Fri Jun 10 01:40:35 IST 2016