THE PRINCIPAL COMMISSIONER OF INCOME TAX-2 vs. MUNDRA INTERNATIONAL CONTAINER TERMINAL PVT. LTD

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TAXAP/634/2019HC GujaratGJHC24056020201916 September 2019Author: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the Tax Appeals are not pressed by the Revenue. The reason cited is the low tax effect, in accordance with Circular No. 17/2019 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular establishes revised monetary limits for filing appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. Consequently, based on the Revenue's decision not to press the appeals due to the low tax effect and the guidance provided by the circular, both Tax Appeals are disposed of accordingly. No specific finding on the merits of the original dispute is recorded, as the appeals were not pursued.

What were the facts?

These are two Tax Appeals filed by the Revenue under Section 260A of the Income Tax Act, 1961, against the assessee, Mundra International Container Terminal Pvt. Ltd. The appeals challenge orders passed by the Income Tax Appellate Tribunal (ITAT). The appeals were listed for hearing before the High Court of Gujarat. The Revenue indicated that the appeals were not being pressed. This decision was based on Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which revised the monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

What were the issues?

1. Whether the Revenue should be permitted to withdraw or not press the present Tax Appeals before the High Court, considering the low tax effect in light of CBDT Circular No. 17/2019. The Revenue's contention is that the appeals are not pressed due to the low tax effect, as per the revised monetary limits stipulated in CBDT Circular No. 17/2019. This circular sets a monetary threshold of Rs. 1,00,00,000 for appeals to be filed before the High Court. The Revenue relies on this circular to justify not pursuing the appeals. The Assessee's contention is not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/634/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 634 of 2019 With R/TAX APPEAL NO. 635 of 2019 ============================================= THE PRINCIPAL COMMISSIONER OF INCOME TAX-2 Versus MUNDRA INTERNATIONAL CONTAINER TERMINAL PVT. LTD ============================================= Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) for the Opponent(s) No. 1 ============================================= CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO Date : 16/09/2019

ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA)

1.

These Tax Appeals under Section 260A of the Income Tax Act, 1961 (for short ‘The Act, 1961’) are at the instance of the Revenue.

2.

These Tax Appeals are not pressed in view of the low tax effect having regard to the Circular No.17/2019, dated 8th August, 2019 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board Direct Taxes, New Delhi.

3.

According to the new policy as reflected from the C/TAXAP/634/2019 ORDER Circular referred to above, the table for monetary limits is as follows : Sr. No. Appeals/SLPs in Income-tax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000

4.

In view of the aforesaid, both the Tax Appeals are disposed of accordingly. (J. B. PARDIWALA, J) (A. C. RAO, J) Dolly

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