THE PRINCIPAL COMMISSIONER OF INCOME TAX 3 vs. NAVDURGA VOYAGA PVT LTD

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TAXAP/123/2019HC GujaratGJHC24019543201907 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat at Ahmedabad held that the Tax Appeal is not pressed by the Revenue due to the low tax effect, in accordance with Circular No. 17/2019. The circular establishes a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. As the current appeal falls under this threshold, it is disposed of. The Court reserved liberty for the Revenue to revive the appeal in case of any difficulty. No specific finding on the merits of the original assessment or the grounds of appeal was made, as the appeal was not pressed.

What were the facts?

The Principal Commissioner of Income Tax 3 (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Navdurga Voyaga Pvt Ltd (Assessee). The appeal was notified for an appropriate order due to its low tax effect. The Revenue cited Circular No. 17/2019, dated 8th August 2019, issued by the Central Board of Direct Taxes, which outlines monetary limits for filing appeals.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect as per Circular No. 17/2019? (Question of law) Contentions: Assessee: No arguments recorded for the assessee. Revenue: The Revenue argued that the appeal is not pressed in view of the low tax effect, referencing Circular No. 17/2019, which sets monetary limits for appeals before the High Court at Rs. 1,00,00,000. The appeal falls within the scope of this circular, justifying its disposal.

AI-generated summary — verify with the full judgment below

C/TAXAP/123/2019 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 123 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX 3 Versus NAVDURGA VOYAGA PVT LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 RULE UNSERVED(68) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

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 8 th 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 8 th 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/123/2019 ORDER DATED: 07/01/2022 Sr. No. Appeals/SLPs in Income-tax 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) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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