PRINCIPAL COMMISSIONER OF INCOME TAX -4 vs. SAUMYA CONSTRUCTION PVT. LTD.

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TAXAP/1010/2017HC GujaratGJHC24057237201707 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019 dated August 8, 2019. The Court noted the monetary limits prescribed by the circular for appeals before the Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). Consequently, the appeal was disposed of accordingly. The Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. The principle is that appeals with low tax effect, as defined by CBDT circulars, can be withdrawn or not pressed by the Revenue.

What were the facts?

The appeal, C/TAXAP/1010/2017, was filed by the Principal Commissioner of Income Tax -4 (Revenue) against Saumya Construction Pvt. Ltd. (Assessee). The appeal was notified for an appropriate order by the Registry. The primary reason for the notification and subsequent disposal was the low tax effect, in line with Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular provides monetary limits for filing appeals. The judgment does not specify the assessment year(s) or the amount in dispute.

What were the issues?

1. Whether the appeal should be disposed of due to low tax effect, considering Circular No. 17/2019? (Question of law) Assessee's Contention: The appeal is not pressed due to the low tax effect, in accordance with Circular No. 17/2019. The assessee relies on the policy outlined in this circular, which sets monetary limits for appeals before various authorities, including the High Court. Revenue's Contention: The Revenue has not recorded any specific contention against the application of the circular or the disposal of the appeal on this ground. The appeal was filed by the Revenue.

AI-generated summary — verify with the full judgment below

C/TAXAP/1010/2017 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1010 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX -4 Versus SAUMYA CONSTRUCTION PVT. LTD. ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) 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 MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1. The Registry has notified the appeal for the purpose of passing an appropriate order. The captioned appeal has been notified because of the low tax effect. The appeal is to be disposed of keeping in mind the Circular No.17/2019, dated 8 th August, 2019 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board Direct Taxes, New Delhi. 2. This tax appeal is not pressed in view of the low tax effect having regard to the Circular No.17/2019, dated 8 th 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 Circular referred to above, the table for monetary limits is as follows:- Page 1 of 2

C/TAXAP/1010/2017 ORDER DATED: 07/01/2022 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, the appeal is disposed of accordingly. In case of any difficulty, we reserve the liberty for the Revenue to revive the tax appeal. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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