COMMISSIONER OF INCOME TAX vs. TACON INFRASTRUCTURE PVT LTD

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TAXAP/1511/2009HC GujaratGJHC24041008200927 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. The primary reason for this decision was the low tax effect, as guided by Circular No. 17/2019. The Court acknowledged that the appeal was not pressed by the appellant (Revenue) in light of this circular and the updated monetary limits for appeals. The Court explicitly stated that the appeal is disposed of accordingly. Furthermore, the Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific findings were made on the merits of the original dispute, as the appeal was decided on procedural grounds related to the tax effect policy.

What were the facts?

The Gujarat High Court was considering a Tax Appeal filed by the Commissioner of Income Tax against Tacon Infrastructure Pvt Ltd. The appeal was listed for an appropriate order due to a low tax effect. The Court noted that the appeal was to be disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The Court also mentioned the monetary limits for appeals before the Income Tax Appellate Tribunal, High Court, and Supreme Court as per the new policy.

What were the issues?

1. Whether the appeal should be dismissed due to a low tax effect, as per Circular No. 17/2019? (Question of law and fact) Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed. The judgment indicates the appeal was not pressed in view of the low tax effect and the aforementioned circular. Revenue's Contention: The revenue, as the appellant, did not press the appeal. The judgment states the appeal is not pressed in view of the low tax effect and the circular. No specific arguments were recorded for the revenue.

AI-generated summary — verify with the full judgment below

C/TAXAP/1511/2009 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1511 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 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. Page 1 of 2

C/TAXAP/1511/2009 ORDER 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 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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