PRINCIPAL COMMISSIONER OF INCOME TAX, SURAT - 1 vs. M/S FRAGOMATRIX GLOBAL

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TAXAP/628/2019HC GujaratGJHC24021419201909 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 appeal is not pressed by the Revenue. This decision is based on the low tax effect, in view of CBDT Circular No. 17/2019, dated 8th August, 2019. The circular establishes monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. Since the appeal is not pressed due to the low tax effect falling within these prescribed limits, the appeal is disposed of accordingly. The judgment does not provide any findings on the merits of the case or the decision of the ITAT. No specific issue was decided on its merits, and no ratio decidendi can be extracted for future cases on substantive tax law.

What were the facts?

This is a tax appeal filed by the Principal Commissioner of Income Tax, Surat - 1 (the Revenue) against M/s Fragomatrix Global (the assessee). The appeal is filed under Section 260A of the Income Tax Act, 1961. The appeal is before the High Court of Gujarat at Ahmedabad. The assessment year(s) are not specified in the judgment. The procedural history is that the Revenue has filed this appeal against an order passed by the Income Tax Appellate Tribunal (ITAT), which is not detailed. The amount in dispute is not explicitly stated, but the appeal is being considered in light of monetary limits for appeals.

What were the issues?

1. Whether the appeal should be entertained by the High Court given the monetary limits prescribed by CBDT Circular No. 17/2019? The Revenue's contention is that the appeal is not pressed due to low tax effect, as per CBDT Circular No. 17/2019. The Revenue relies on this circular, which sets monetary limits for filing appeals before various authorities, including the High Court. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The judgment does not record any specific arguments from the assessee.

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/628/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 628 of 2019 ============================================= PRINCIPAL COMMISSIONER OF INCOME TAX, SURAT - 1 Versus M/S FRAGOMATRIX GLOBAL ============================================= Appearance: MRS KALPANAK RAVAL(1046) for the Appellant(s) No. 1 MS PALAK M DEVPURA(10370) for the Opponent(s) No. 1 ============================================= CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO Date : 09/09/2019

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

1.

This tax appeal under Section 260A of the Income Tax Act, 1961 (for short ‘The Act, 1961’) is at the instance of the Revenue.

2.

This tax appeal is 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/628/2019 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, this tax appeal is disposed of accordingly. (J. B. PARDIWALA, J) (A. C. RAO, J) Dolly

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