COMMISSIONER OF INCOME TAX GANDHINAGAR vs. GUJARAT POWER CORPORATION LTD

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TAXAP/204/2013HC GujaratGJHC24043305201327 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 appeal in accordance with CBDT Circular No. 17/2019, dated August 8, 2019. The Court noted that the appeal was not pressed by the Revenue due to its low tax effect. The circular establishes a monetary limit of Rs. 1,00,00,000 for appeals to be filed before the High Court. Since the tax effect in this appeal was below this limit, the appeal was disposed of accordingly. The Court explicitly 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 assessment or appeal.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax, Gandhinagar, against Gujarat Power Corporation Ltd. The appeal was listed for an appropriate order by the Registry. The primary reason for the listing was the low tax effect of the appeal. The appeal was to be disposed of in accordance with Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. The circular outlines monetary limits for filing appeals before various authorities, including the High Court.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per CBDT Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not present any arguments. The appeal was not pressed by the Revenue. Revenue's Contention: The Revenue stated that the appeal is not pressed in view of the low tax effect, referencing CBDT Circular No. 17/2019. The circular sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The Revenue implicitly acknowledges that the tax effect in this appeal falls below this threshold.

AI-generated summary — verify with the full judgment below

C/TAXAP/204/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 204 of 2013 ========================================================== COMMISSIONER OF INCOME TAX GANDHINAGAR Versus GUJARAT POWER CORPORATION LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR SN DIVATIA(1378) 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/204/2013 ORDER 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

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) Vahid Page 2 of 2

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