PRINCIPAL COMMISSIONER OF INCOME TAX 4 vs. SWAGAT INFRASTRUCTURE LTD.

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TAXAP/1013/2018HC GujaratGJHC24046692201827 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the Tax Appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. This circular sets out revised monetary limits for filing appeals. For appeals before the High Court, the monetary limit is Rs. 1,00,00,000. Consequently, the Court disposed of the appeal accordingly. The Revenue was granted liberty to revive the Tax Appeal in case of any difficulty. No specific finding was made on the merits of the original dispute, as the appeal was not pressed.

What were the facts?

The Principal Commissioner of Income Tax 4 (Revenue) filed a Tax Appeal before the Gujarat High Court against an order concerning Swagat Infrastructure Ltd. (Assessee). The appeal was notified for an appropriate order due to its low tax effect. The Court was to consider Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which revised monetary limits for filing appeals. The circular outlines monetary thresholds for appeals before the Appellate Tribunal, High Court, and Supreme Court. The appeal was listed for disposal in light of this circular.

What were the issues?

1. Whether the Tax Appeal is maintainable before the High Court given the low tax effect, in light of Circular No. 17/2019 issued by the CBDT? (Question of law and fact) The Revenue contended that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The Assessee did not present any arguments as recorded in the judgment. The circular establishes monetary limits for appeals, with a limit of Rs. 1,00,00,000 for appeals before the High Court. The appeal's disposal is to be considered in light of this policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/1013/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1013 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 4 Versus SWAGAT INFRASTRUCTURE 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 BHARGAV D. KARIA

Date : 27/01/2020

ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 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 8th August 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, New Delhi. 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 of Direct Taxes, New Delhi. Page 1 of 2

C/TAXAP/1013/2018 ORDER According to the new policy, as reflected from the Circular referred to above, the table for monetary limits is as follows : Sr. No. Appeals/SLPs in Income-tax matters Monetary Limits (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000 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.) (BHARGAV D. KARIA, J.) /MOINUDDIN Page 2 of 2

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