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