COMMISSIONER OF INCOME TAX I vs. ENVIRO CONTROL ASSOCIATED PVT LTD

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TAXAP/1015/2013HC GujaratGJHC24043575201314 November 2019Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE MS. JUSTICE SANGEETA K. VISHEN2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal noted that the Revenue's counsel stated the tax effect in the appeal was less than Rs. 1,00,00,000/-. In light of Circular No. 17 of 2019 dated 08.08.2019, which stipulates that appeals with a tax effect not exceeding Rs. 1,00,00,000/- should not be filed before the High Court and is retrospectively applicable to pending appeals, the Revenue's counsel did not press the appeal. Consequently, the appeal was disposed of as not pressed. The High Court also noted that if there was any error in the computation of the tax effect or if the Circular was not applicable for any reason, the appellant would be at liberty to seek revival of the appeal. No specific issue was left undecided, as the appeal was disposed of on a procedural ground.

What were the facts?

The appeal was filed by the Commissioner of Income Tax I (the Revenue) against Enviro Control Associated Pvt Ltd (the assessee). The assessment year(s) are not specified. The order or action under challenge is the appeal itself before the High Court. The procedural history is that the Revenue filed the present Tax Appeal. During the hearing, the Revenue's counsel stated that the tax effect involved in the appeal was less than Rs. 1,00,00,000/-. This statement was made in the context of a Circular issued by the CBDT.

What were the issues?

1. Whether the present appeal, involving a tax effect less than Rs. 1,00,00,000/-, should be entertained by the High Court, considering the Circular No. 17 of 2019 dated 08.08.2019 issued by the CBDT. The Revenue's contention, as presented by its counsel, was that the tax effect in the appeal was below the monetary limit stipulated in Circular No. 17 of 2019. This circular mandates that no appeal with a tax effect not exceeding Rs. 1,00,00,000/- shall be filed before the High Court and is applicable retrospectively to pending appeals. Based on this, the Revenue stated that it did not press the present appeal. The assessee's contentions are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/1015/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1015 of 2013 ========================================================== COMMISSIONER OF INCOME TAX I Versus ENVIRO CONTROL ASSOCIATED PVT LTD ========================================================== Appearance: MRS KALPANAK RAVAL(1046) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE MS. JUSTICE SANGEETA K. VISHEN

Date : 14/11/2019 ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mrs. Kalpana K. Raval, learned senior standing counsel for the appellant and Mr. B. S. Soparkar, learned advocate for the respondent. 2. Mrs. Kalpana K. Raval, learned senior standing counsel for the appellant, has stated that the tax effect involved in this appeal is less than Rs.1,00,00,000/-. Under the circumstances, in the light of the Circular No.17 of 2019 dated 08.08.2019 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, which provides that no appeal wherein the tax effect does not exceed the monetary limit of Rs.1,00,00,000/- shall be filed before the High Court and which has also been made retrospectively applicable to Page 1 of 2

C/TAXAP/1015/2013 ORDER pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. 3. The appeal is, accordingly, disposed of as not pressed in light of the Circular dated 08.08.2019. However, in case there is any error in the computation of the tax effect involved or if, for any reason, the Circular is not applicable, it would be open for the appellant to seek revival of the appeal. (HARSHA DEVANI, J) (SANGEETA K. VISHEN,J) RAVI P. PATEL Page 2 of 2

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