COMMISSIONER OF INCOME TAX-II vs. GUJARAT STATE FINANCIAL SERVICES LTD

PDF · subscribers

TAXAP/1291/2009HC GujaratGJHC24040981200927 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 decided to dispose of the tax appeal in accordance with Circular No. 17/2019 due to the low tax effect. The Court noted that the appeal was not pressed by the Revenue based on this circular. The reasoning is that the monetary limit for appeals before the High Court, as stipulated in the circular, was not met, making it undesirable for the Revenue to pursue the appeal. The operative direction is that the appeal is disposed of. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the appeal was disposed of on procedural grounds related to the circular.

What were the facts?

The Gujarat High Court was considering a tax appeal filed by the Commissioner of Income Tax-II against Gujarat State Financial Services Ltd. The appeal, bearing appeal number 1291 of 2009, was listed for an appropriate order. The Court noted that the appeal was being considered in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which pertains to low tax effect cases. The circular outlines monetary limits for filing appeals before various authorities, including the Income Tax Appellate Tribunal, High Courts, and the Supreme Court.

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 and fact) The Revenue argued that the appeal was not pressed in view of the low tax effect, citing Circular No. 17/2019. The Assessee's specific arguments are not recorded in the judgment. The Circular No. 17/2019, dated August 8, 2019, sets monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/1291/2009 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1291 of 2009 ========================================================== COMMISSIONER OF INCOME TAX-II Versus GUJARAT STATE FINANCIAL SERVICES LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR JP SHAH(1054) for the Opponent(s) No. 1 MR MANISH J SHAH(1320) 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/1291/2009 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

Recent GST High Court judgments

Search GST case law →