COMMISSIONER OF INCOME TAX vs. TACON INFRASTRUCTURE PVT LTD

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TAXAP/1510/2009HC GujaratGJHC24041007200931 July 2020Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH,HONOURABLE MR. JUSTICE J.B.PARDIWALA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat at Ahmedabad disposed of the tax appeal. The decision was based on the Revenue's decision not to press the appeal due to its low tax effect, in accordance with Circular No. 17/2019. This circular establishes monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. The court noted that if any difficulty arises, the Revenue reserves the liberty to revive the tax appeal. No specific findings on the merits of the original assessment or the grounds of appeal were made, as the appeal was not pressed.

What were the facts?

The appeal, C/TAXAP/1510/2009, was filed by the Commissioner of Income Tax (Revenue) against Tacon Infrastructure Pvt Ltd (Assessee). The appeal was listed for an order due to its low tax effect. The High Court of Gujarat at Ahmedabad was considering the appeal. The judgment references Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The appeal was to be disposed of in light of this circular and its policy on low tax effect appeals.

What were the issues?

1. Whether the appeal should be disposed of due to low tax effect, considering Circular No. 17/2019? Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The appeal is being disposed of based on the Revenue's decision not to press it. Revenue's Contention: The Revenue has not pressed the appeal in view of the low tax effect, as per Circular No. 17/2019. The circular provides monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/1510/2009 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1510 of 2009 ========================================================== COMMISSIONER OF INCOME TAX Versus TACON INFRASTRUCTURE PVT LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR TUSHAR P HEMANI(2790) for the Opponent(s) No. 1 MS VAIBHAVI K PARIKH(3238) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA

Date : 31/07/2020

ORAL ORDER (PER : HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH) 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 Page 1 of 2

C/TAXAP/1510/2009 ORDER 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: 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. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) ALI ISTAYAK Page 2 of 2

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