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High Court of Gujarat

COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION AND TRANSFER PRICING)versusSKAPS INDUSTRIES INDIA PVT. LTD.

Disposal
46-ANY OTHER MODE @ FH

Holding

A tax appeal is not maintainable if the tax effect is less than Rs.2 crores under Circular No.9 of 2024.

Summary

The Commissioner of Income Tax (International Taxation and Transfer Pricing) appealed against SKAPS Industries India Pvt. Ltd. The appellant argued that the tax effect involved in the appeal was less than Rs.2 crores, invoking Circular No.9 of 2024 dated 17.09.2024 which bars the maintenance of tax appeals where the tax effect is below this threshold. The Court examined the applicability of the circular and the quantum of tax effect. Finding that the tax effect indeed fell below Rs.2 crores, the Court held that the appeal was not maintainable under the circular. However, the Court granted the appellant liberty to revive the appeal by filing a simple note before the registry if any difficulty arises. Consequently, the appeal was disposed of on the ground of low tax effect.

Issues considered

  • Whether a tax appeal is maintainable when the tax effect is less than Rs.2 crores as per Circular No.9 of 2024.

Subjects

tax appealcircularlow tax effectmaintainabilityincome taxtransfer pricingGupta v. Commissioner

Judgment

       C/TAXAP/1371/2018                                                     ORDER DATED: 07/01/2026




                IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                               R/TAX APPEAL NO. 1371 of 2018

 ==========================================================
     COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION AND
                       TRANSFER PRICING)
                             Versus
                SKAPS INDUSTRIES INDIA PVT. LTD.
 ==========================================================
 Appearance:
 MR.VARUN K.PATEL(3802) for the Appellant(s) No. 1
 MRS SWATI SOPARKAR(870) for the Opponent(s) No. 1
 ==========================================================

    CORAM:HONOURABLE MR. JUSTICE A.S. SUPEHIA
          and
          HONOURABLE MR. JUSTICE PRANAV TRIVEDI

                                           Date : 07/01/2026

                          ORAL ORDER
   (PER : HONOURABLE MR. JUSTICE A.S. SUPEHIA)


           Learned Senior Standing Counsel Mr.Varun Patel for the
 appellant submitted that the tax effect in this appeal is less
 than Rs.2 crores and as per the Circular no.9 of 2024 dated
 17.09.2024, this Tax Appeal would not be maintainable.
           In view of the above statement, the Tax Appeal is
 disposed of on the ground of low tax effect with a liberty to
 the appellant to revive in case of difficulty by filing a simple
 note before the registry of this Court.


                                                                                   (A. S. SUPEHIA, J)




                                                                               (PRANAV TRIVEDI,J)
 BIMAL /22


Original copy of this order has been signed by the Hon'ble Judges.
Digitally signed by: BIMAL B CHAKRAVARTY(HC01089), PRIVATE SECRETARY, at High Court of Gujarat on 07/01/2026 15:02:58




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