COMMISSIONER OF INCOME TAX - GANDHINAGAR vs. GUJARAT STATE ENERGY GENERATION LTD

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TAXAP/1244/2011HC GujaratGJHC24045394201127 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 was not pressed by the appellant (Revenue) due to the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The court acknowledged the revised monetary limits for appeals stipulated in the circular, which indicated that appeals with a tax effect below Rs. 1,00,00,000 before the High Court were to be considered for disposal on this ground. Consequently, the appeal was disposed of in accordance with the policy outlined in the circular. The court also reserved the 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.

What were the facts?

The Gujarat High Court was hearing a tax appeal filed by the Commissioner of Income Tax - Gandhinagar against Gujarat State Energy Generation Ltd. The appeal was listed for passing an appropriate order due to a low tax effect. The court noted that the appeal was not pressed by the appellant in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular revised monetary limits for filing appeals. The court referred to the table within the circular, which specified monetary limits for appeals before the Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). The appeal was disposed of based on this circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed by the revenue. The judgment records no argument for the assessee. Revenue's Contention: The revenue, through its counsel, submitted that the appeal was not pressed in view of the low tax effect, citing Circular No. 17/2019, dated August 8, 2019. The circular establishes revised monetary limits for filing appeals before various judicial forums, including the High Court. The revenue relied on this circular to justify not pressing the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/1244/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1244 of 2011 ========================================================== COMMISSIONER OF INCOME TAX - GANDHINAGAR Versus GUJARAT STATE ENERGY GENERATION LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) 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 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/1244/2011 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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