COMMISSIONER OF INCOME TAX-IV vs. PEARL ENERGY INFRASTRUCTURE LTD

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TAXAP/2131/2009HC GujaratGJHC24041087200909 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 the tax appeal is not pressed by the appellant (Revenue) in view of the low tax effect and Circular No. 17/2019. The circular establishes monetary limits for appeals before various authorities, with appeals before the High Court having a limit of Rs. 1,00,00,000. The court disposed of the appeal accordingly. It also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. The ratio is that appeals with a low tax effect, falling below the prescribed monetary limits in the CBDT circular, may not be pressed and can be disposed of.

What were the facts?

The appeal before the Gujarat High Court was filed by the Commissioner of Income Tax-IV against Pearl Energy Infrastructure Ltd. The appeal was listed for an appropriate order due to low tax effect. The court was to consider Circular No. 17/2019, dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular outlines new monetary limits for filing appeals. The appeal was not pressed by the appellant 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 in light of Circular No. 17/2019? The Revenue argued that the appeal is not pressed due to the low tax effect, referencing Circular No. 17/2019. The Assessee's arguments are not recorded in the judgment. The issue revolves around the applicability of the new monetary limits for appeals as per the aforementioned circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/2131/2009 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 2131 of 2009 ========================================================== COMMISSIONER OF INCOME TAX-IV Versus PEARL ENERGY INFRASTRUCTURE LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MRS SWATI SOPARKAR(870) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO

Date : 09/09/2019

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/2131/2009 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) (A. C. RAO, J) aruna Page 2 of 2

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