THE PRINCIPAL COMMISSIONER OF INCOME TAX, GANDHINAGAR vs. GANESH INDUSTRIES

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TAXAP/127/2019HC GujaratGJHC24019553201927 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 Revenue in view of the low tax effect, considering Circular No. 17/2019 dated August 8, 2019. This circular prescribes monetary limits for filing appeals before various authorities, with a limit of Rs. 1,00,00,000 before the High Court. The Court disposed of the appeal accordingly. The reasoning was based on the policy decision of the government to restrict appeals with low tax effect. The ratio decidendi is that appeals with a tax effect below the prescribed monetary limits, as per CBDT circulars, are not to be pressed. The operative direction was to dispose of the appeal. The Court reserved liberty for the Revenue to revive the appeal in case of any difficulty.

What were the facts?

The Principal Commissioner of Income Tax, Gandhinagar (Revenue) filed a Tax Appeal before the Gujarat High Court against Ganesh Industries (Assessee). The appeal was notified for an appropriate order due to low tax effect. The appeal was filed in the High Court, which has a monetary limit of Rs. 1,00,00,000 for appeals as per Circular No. 17/2019 dated August 8, 2019, issued by the CBDT. The judgment does not specify the assessment year(s) or the specific amount in dispute, nor does it detail the procedural history before the lower authorities.

What were the issues?

1. Whether the Tax Appeal is maintainable before the High Court in light of the monetary limits prescribed by Circular No. 17/2019, given the low tax effect. (Question of law) Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The appeal was not pressed. Revenue's Contention: The Revenue, through its counsel, did not press the appeal. The appeal was disposed of in view of the low tax effect and the CBDT Circular No. 17/2019, which sets monetary limits for filing appeals. The Revenue relied on Circular No. 17/2019.

AI-generated summary — verify with the full judgment below

C/TAXAP/127/2019                                                                                                 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO.  127 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX, GANDHINAGAR Versus GANESH INDUSTRIES ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE SERVED(64) 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) 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 of Direct Taxes, New Delhi. 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 of Direct Taxes, New Delhi. Page  1 of  2

C/TAXAP/127/2019                                                                                                 ORDER According to the new policy, as reflected from the Circular referred to above, the table for monetary limits is as follows : Sr. No. Appeals/SLPs in Income-tax matters Monetary Limits (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000 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.) /MOINUDDIN Page  2 of  2

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