DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 4 vs. PALVI POWER TECH SALES PVT. LTD.

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TAXAP/206/2015HC GujaratGJHC24047731201521 January 2019Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE DR. JUSTICE A. P. THAKER2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that since the tax effect involved in the appeal was less than Rs. 50,00,000/-, and in light of Circular No. 3/2018 dated 11th July, 2018, which mandates that no appeal with a tax effect not exceeding this limit should be filed before the High Court and is retrospectively applicable, the appeal would not be pressed. Consequently, the appeal was disposed of as not pressed. The Court also noted that if there was any error in the computation of the tax effect or if the circular was not applicable for any reason, the appellant would be at liberty to seek revival of the appeal. No specific finding was given on the merits of the original dispute.

What were the facts?

This is an appeal filed by the Deputy Commissioner of Income Tax Circle 4 (the appellant/revenue) against Palvi Power Tech Sales Pvt. Ltd. (the respondent/assessee). The appeal challenges an order or action that is not specified in the provided text. The assessment year(s) are also not mentioned. The procedural history is limited to the filing of this appeal before the High Court of Gujarat. The material fact that emerged during the hearing is that the tax effect involved in the appeal is less than Rs. 50,00,000/-.

What were the issues?

The High Court was not required to decide any substantive issues of law or fact. The primary issue that arose for consideration was the applicability of Circular No. 3/2018 dated 11th July, 2018, issued by the Central Board of Direct Taxes, which stipulates that no appeal with a tax effect not exceeding Rs. 50,00,000/- shall be filed before the High Court and is retrospectively applicable to pending appeals. The appellant, through its learned Senior Standing Counsel, did not press the appeal in light of the aforementioned circular and the admitted tax effect being below the prescribed monetary limit. The respondent, through its learned advocate, was present but made no specific arguments recorded in the judgment, as the appeal was not pressed by the appellant.

AI-generated summary — verify with the full judgment below

C/TAXAP/206/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 206 of 2015 ========================================================== DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 4 Versus PALVI POWER TECH SALES PVT. LTD. ========================================================== Appearance: MR.VARUN K.PATEL(3802) for the APPELLANT(s) No. 1 UMAIDSINGH BHATI(7973) for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE DR.JUSTICE A. P. THAKER

Date : 21/01/2019

ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mr.Varun K. Patel, learned Senior Standing Counsel for the appellant and Mr.Umaidsingh Bhati, learned advocate for the respondent. 2. It is an admitted position between the parties that the tax effect involved in this appeal is less than Rs.50,00,000/-. Under the circumstances, in the light of the Circular No.3/2018 dated 11th July, 2018 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes which provides that no appeal wherein the tax effect does not exceed the monetary limit of Rs.50,00,000/- shall be filed before the High Court and has also been made retrospectively applicable to pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. 3. The appeal is accordingly disposed of as not pressed in the light Page 1 of 2

C/TAXAP/206/2015 ORDER of the Circular dated 11th July, 2018. However, in case there is any error in the computation of the tax effect involved or if for any reason, the circular is not applicable, it would be open for the appellant to seek revival of the appeal. (HARSHA DEVANI, J) (A. P. THAKER, J) V.R. PANCHAL Page 2 of 2

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