COMMISSIONER OF INCOME TAX-I vs. ADMIRACLE ADVERTISING PVT LTD

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TAXAP/1830/2009HC GujaratGJHC24041049200909 September 2019Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that both tax appeals filed by the Revenue were not pressed due to a low tax effect, as per Circular No. 17/2019. This circular establishes revised monetary limits for appeals, with Rs. 1,00,00,000 being the threshold for appeals before the High Court. Since the appeals fell below this threshold or were otherwise considered to have a low tax effect in light of the new policy, they were disposed of accordingly. The court reserved liberty for the Revenue to revive the tax appeals in case of any difficulty. No specific findings were made on the merits of the original tax disputes.

What were the facts?

The Gujarat High Court was considering two tax appeals, C/TAXAP/1830/2009 and R/TAX APPEAL NO. 2274 of 2010, filed by the Commissioner of Income Tax-I against Admirable Advertising Pvt Ltd. The appeals were listed for appropriate orders due to low tax effect. The court noted that the appeals were to be disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which revised monetary limits for filing appeals. The circular specifies monetary limits for appeals before the Income Tax Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000).

What were the issues?

1. Whether the appeals filed by the Revenue should be dismissed due to low tax effect, in light of the Circular No. 17/2019 issued by the CBDT? (Question of law) Assessee's Contention: The assessee did not make any specific arguments as the appeals were not pressed by the Revenue. The judgment states that both appeals are not pressed in view of the low tax effect and the Circular No. 17/2019. Revenue's Contention: The Revenue did not press the appeals before the High Court, citing the low tax effect and the guidelines provided in Circular No. 17/2019. The circular sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The appeals were disposed of based on this policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/1830/2009 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1830 of 2009 With R/TAX APPEAL NO. 2274 of 2010 ========================================================== COMMISSIONER OF INCOME TAX-I Versus ADMIRACLE ADVERTISING PVT LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE NOT RECD BACK(63) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO

Date : 09/09/2019

COMMON ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 1. The Registry has notified the captioned appeals for the purpose of passing appropriate orders. The captioned appeals have been notified because of the low tax effect. These appeals are 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. Both the tax appeals are 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 Page 1 of 2

C/TAXAP/1830/2009 ORDER 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, both the appeals are disposed of accordingly. In case of any difficulty, we reserve the liberty for the Revenue to revive the tax appeal. (J. B. PARDIWALA, J) (A. C. RAO, J) aruna Page 2 of 2

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