PR COMMISSIONER OF INCOME TAX-1, vs. SUN CORPORATION

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TAXAP/165/2017HC GujaratGJHC24056822201727 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 appeal is not pressed by the Revenue in view of the low tax effect and the policy outlined in Circular No. 17/2019. The circular establishes monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. Consequently, the appeal was disposed of accordingly. The court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. 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/165/2017, was filed by the Pr Commissioner of Income Tax-1 (Revenue) against Sun Corporation (Assessee). The appeal was listed for an order due to low tax effect. The High Court of Gujarat at Ahmedabad was considering the appeal. The judgment references 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, which outlines monetary limits for filing appeals. The appeal was not pressed by the Revenue in light of this circular and the low tax effect.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? The Revenue argued that the appeal is not pressed in view of the low tax effect and the policy reflected in Circular No. 17/2019, which sets monetary limits for appeals before various authorities, including the High Court at Rs. 1,00,00,000. The Assessee's arguments are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/165/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 165 of 2017 ========================================================== PR COMMISSIONER OF INCOME TAX-1, Versus SUN CORPORATION ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(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. 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/165/2017 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) GIRISH Page 2 of 2

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