THE PR. COMMISSIONER OF INCOME TAX, RAJKOT 1 vs. M/S DYNAMIX URJA (INDIA) LTD

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TAXAP/176/2019HC GujaratGJHC24026245201927 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 Tax Appeal was not pressed by the Revenue in view of the low tax effect, having regard to Circular No. 17/2019 dated August 8, 2019. This circular provides monetary limits for filing appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. The Court disposed of the appeal in accordance with this circular. The reasoning is based on the Revenue's policy decision to withdraw appeals below certain monetary thresholds. The ratio decidendi is that appeals with low tax effect, as defined by CBDT circulars, are not to be pursued. The operative direction was to dispose of the appeal accordingly, with liberty reserved for the Revenue to revive the appeal if any difficulty arose. No specific issue was left undecided.

What were the facts?

The Principal Commissioner of Income Tax, Rajkot (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against an order concerning M/s Dynamix Urja (India) Ltd. (Assessee). The appeal was listed for passing an appropriate order. The appeal was notified due to its low tax effect. The High Court noted that the appeal was not pressed by the Revenue in view of the low tax effect, referencing 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 appeal was disposed of accordingly, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the appeal should be entertained given its low tax effect, in light of Circular No. 17/2019 issued by the CBDT? (Question of law and fact) Assessee's Contentions: The judgment does not record any specific contentions made by the assessee. However, the appeal was not pressed by the Revenue, implying the assessee likely did not contest the application of the circular or the low tax effect. Revenue's Contentions: The Revenue did not press the appeal due to its low tax effect, as per Circular No. 17/2019. The circular establishes monetary limits for appeals before various authorities, including the High Court (Rs. 1,00,00,000). The Revenue's decision not to press the appeal indicates it fell below this threshold or was otherwise deemed not worth pursuing under the new policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/176/2019                                                                                                 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO.  176 of 2019 ========================================================== THE PR. COMMISSIONER OF INCOME TAX, RAJKOT 1 Versus M/S DYNAMIX URJA (INDIA) LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 DS AFF.NOT FILED (R)(71) 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) 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 of Direct Taxes, New Delhi. 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 of Direct Taxes, New Delhi. Page  1 of  2

C/TAXAP/176/2019                                                                                                 ORDER 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 Limits (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000 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.) /MOINUDDIN Page  2 of  2

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