DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION ) vs. ASSENCE INC

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TAXAP/1020/2014HC GujaratGJHC24045157201417 December 2018Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE DR. JUSTICE A. P. THAKER2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that since the tax effect involved in the appeal is less than Rs. 50,00,000/- and Circular No. 3/2018 makes such appeals not pressable before the High Court, the appeal is disposed of as not pressed. The reasoning is based on the admitted fact of the low tax effect and the applicability of the CBDT circular. The ratio decidendi is that appeals with a tax effect below the prescribed monetary limit, as per the relevant circular, are to be withdrawn or not pressed. The operative direction is to dispose of the appeal as not pressed. The court also noted that if there is any error in the computation of the tax effect or if the circular is not applicable for any reason, the appellant can seek revival of the appeal.

What were the facts?

The appeal was filed by the Director of Income Tax (International Taxation) against Assence Inc. The assessment year(s) are not specified in the judgment. The order or action under challenge is the appeal itself, filed before the High Court of Gujarat. The procedural history involves the appeal being heard by the High Court. It is an admitted position between the parties that the tax effect involved in the appeal is less than Rs. 50,00,000/-. The appellant's counsel, Mr. Varun K. Patel, did not press the appeal.

What were the issues?

The High Court had to decide whether to proceed with the appeal given the tax effect. The appellant argued that the tax effect is less than Rs. 50,00,000/-. The appellant relied on Circular No. 3/2018 dated 11th July, 2018, which states that no appeal with a tax effect not exceeding Rs. 50,00,000/- shall be filed before the High Court and that this circular is retrospectively applicable to pending appeals. The revenue's contentions are not recorded as the appellant did not press the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/1020/2014 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1020 of 2014 ========================================================== DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION ) Versus ASSENCE INC ========================================================== Appearance: MR.VARUN K.PATEL(3802) for the PETITIONER(s) No. 1 HIREN J TRIVEDI(8808) for the RESPONDENT(s) No. 1 MR VIJAY S RANJAN(6126) for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE DR.JUSTICE A. P. THAKER

Date : 17/12/2018

ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mr.Varun Patel, learned Senior Standing Counsel for the appellant and Mr.Vijay Ranjan, learned advocate for the respondent. 2. It is an admitted position between the parties that the tax effect involved in this appeal is less than Rs.50,00,000/-. Under the circumstances, in the light of the Circular No.3/2018 dated 11th July, 2018 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.50,00,000/- shall be filed before the High Court and has also been made retrospectively applicable to 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 the Page 1 of 2

C/TAXAP/1020/2014 ORDER light of the Circular dated 11th July, 2018. 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) (A. P. THAKER, J) Vijay Page 2 of 2

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