THE PRINCIPAL COMMISSIONER OF INCOME TAX 2 vs. M S KHURANA ENGINEERING LIMITED

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TAXAP/124/2019HC GujaratGJHC24019558201907 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 noted that the appeal was notified for passing an appropriate order due to its low tax effect, in accordance with Circular No. 17/2019. The Court observed that the appeal was not pressed by the appellant (Revenue) in view of this circular and the monetary limits prescribed therein for appeals before the High Court (Rs. 1,00,00,000). Consequently, the appeal was disposed of accordingly. The Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute, as the appeal was not pressed.

What were the facts?

The Principal Commissioner of Income Tax 2 (Revenue) filed this tax appeal against M/s Khurana Engineering Limited (Assessee). The appeal was notified for passing an appropriate order due to its low tax effect. The appeal was to be disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The judgment does not specify the assessment year(s) or the amount in dispute, nor does it detail the procedural history prior to this High Court appeal.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in light of Circular No. 17/2019? (Question of law) Assessee's Contention: The appeal is not pressed due to the low tax effect, as per Circular No. 17/2019. The judgment does not record any specific arguments from the assessee beyond this statement. Revenue's Contention: The appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019. The judgment does not record any specific arguments from the revenue beyond this statement.

AI-generated summary — verify with the full judgment below

C/TAXAP/124/2019 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 124 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX 2 Versus M S KHURANA ENGINEERING LIMITED ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) 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/124/2019 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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