COMMISSIONER OF INCOME TAX-II vs. GUJARAT GAS CO LTD

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TAXAP/1061/2011HC GujaratGJHC24045315201127 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 is not pressed by the Revenue due to the low tax effect, in accordance with 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 tax effect in this case was below this limit, the Revenue chose not to press the appeal. The Court disposed of the appeal accordingly. Liberty was granted to the Revenue to revive the tax appeal if any difficulty arose. No specific issue was left undecided; the appeal was disposed of based on the stated policy.

What were the facts?

The Commissioner of Income Tax-II (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Gujarat Gas Co Ltd (the assessee). The appeal was notified for an appropriate order due to low tax effect. The appeal was not pressed by the Revenue in view of Circular No. 17/2019 dated 8th August, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The High Court noted the monetary limit for appeals before the High Court as Rs. 1,00,00,000. The appeal was disposed of accordingly, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the Tax Appeal filed by the Revenue should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not make any specific arguments as the appeal was not pressed by the Revenue. The judgment does not record any arguments from the assessee. Revenue's Contention: The Revenue submitted that the appeal was not pressed in view of the low tax effect, citing Circular No. 17/2019 dated 8th August, 2019. The circular specifies monetary limits for appeals, and the appeal falls below the threshold for filing before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/1061/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1061 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-II Versus GUJARAT GAS CO LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) 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) 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 8th 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 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 Circular referred to above, the table for monetary limits is as follows: Page 1 of 2

C/TAXAP/1061/2011 ORDER Sr. No. Appeals/SLPs in Incometax 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) (BHARGAV D. KARIA, J) aruna Page 2 of 2

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