COMMISSIONER OF INCOME TAX - CENTRAL - I vs. NEPTUNE INFRASTRUCTURE PVT LTD

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TAXAP/141/2012HC GujaratGJHC24042775201207 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 held that the appeal was not pressed by the Revenue due to the low tax effect, in accordance with Circular No. 17/2019. The court disposed of the appeal accordingly. The reasoning is based on the Revenue's decision to not pursue the appeal given the monetary limits stipulated in the circular. 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 regarding the merits of the original assessment or the order under challenge was decided.

What were the facts?

The appeal, filed by the Commissioner of Income Tax - Central - I (the Revenue), is against an order concerning Neptune Infrastructure Pvt Ltd (the assessee). The appeal was listed for passing an appropriate order due to its low tax effect. The High Court of Gujarat at Ahmedabad noted that the appeal was not pressed by the Revenue in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals. The court referred to the table within the circular, which specifies monetary limits for appeals before the Appellate Tribunal, High Court, and Supreme Court.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, considering the CBDT Circular No. 17/2019? (Question of law) The Revenue contended that the appeal was not pressed in view of the low tax effect, referencing Circular No. 17/2019. The assessee's arguments are not recorded in the judgment. The circular itself provides updated monetary limits for appeals at various levels, indicating a policy to withdraw or not press appeals below certain thresholds.

AI-generated summary — verify with the full judgment below

C/TAXAP/141/2012 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 141 of 2012 ========================================================== COMMISSIONER OF INCOME TAX - CENTRAL - I Versus NEPTUNE INFRASTRUCTURE PVT LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR SN DIVATIA(1378) 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/141/2012 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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