COMMISSIONER OF INCOME TAX-IV vs. SUZLON INFRASTRUCTURE LTD

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TAXAP/1098/2011HC GujaratGJHC24045349201125 February 2019Bench: 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 it is an admitted position between the parties that the tax effect involved in the appeal is less than Rs. 50,00,000/-, and in light of Circular No. 3/2018 dated 11th July, 2018, 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 been made retrospectively applicable to pending appeals, the learned senior standing counsel for the appellant (Revenue) does not press the present appeal. Consequently, the appeal is disposed of as not pressed. The court 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 would be at liberty to seek revival of the appeal. No other issues were decided on merits.

What were the facts?

This case involves an appeal filed by the Commissioner of Income Tax-IV (the Revenue) against Suzlon Infrastructure Ltd (the Assessee). The appeal was before the High Court of Gujarat at Ahmedabad. The assessment years are not specified in the provided text. The order or action under challenge is the appeal itself, filed by the Revenue. The procedural history is that the appeal was filed and is now being heard. A key fact is that both parties admit the tax effect involved in the appeal is less than Rs. 50,00,000/-.

What were the issues?

1. Whether the appeal should be dismissed in light of the CBDT Circular No. 3/2018, given that the tax effect is less than Rs. 50,00,000/-. This is a question of law and fact, turning on the applicability of the circular. The Revenue's contention, as presented by Mrs. Mauna Bhatt, is that they do not press the present appeal. This is based on Circular No. 3/2018, which mandates that no appeal with a tax effect not exceeding Rs. 50,00,000/- shall be filed before the High Court and is retrospectively applicable to pending appeals. The Assessee's contention, as presented by Mr. Tushar Hemani and Ms. Vaibhavi Parikh, is not explicitly recorded in terms of arguments, but their presence indicates they are the respondents opposing the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/1098/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1098 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-IV Versus SUZLON INFRASTRUCTURE LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR TUSHAR P HEMANI(2790) for the Opponent(s) No. 1 MS VAIBHAVI K PARIKH(3238) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE DR.JUSTICE A. P. THAKER

Date : 25/02/2019

ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mrs. Mauna Bhatt, learned Senior Standing Counsel for the appellant and Mr. Tushar Hemani, 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. Page 1 of 2

C/TAXAP/1098/2011 ORDER 3. The appeal is accordingly disposed of as not pressed in the 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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