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

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TAXAP/2274/2010HC GujaratGJHC24046380201009 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 were disposed of as not pressed. The Court's decision was based on the Revenue's submission that the appeals were not being pressed due to a low tax effect, in accordance with Circular No. 17/2019. This circular, issued by the CBDT, sets out revised monetary limits for filing appeals before various judicial forums. The Court acknowledged the updated monetary limits, including Rs. 1,00,00,000 for appeals before the High Court. The operative direction was to dispose of the appeals accordingly. The Court also reserved liberty for the Revenue to revive the tax appeals in case of any difficulty. No specific issue was left undecided; the appeals were disposed of on procedural grounds related to the revised policy.

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 both appeals were not pressed by the appellant (Revenue) in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals. The Court observed the monetary limits for appeals before the 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 should be dismissed due to low tax effect as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not make any arguments as the appeals were not pressed by the Revenue. Revenue's Contention: The Revenue argued that both tax appeals should be disposed of in view of the low tax effect, citing Circular No. 17/2019, dated August 8, 2019. The circular establishes revised monetary limits for filing appeals, and the appeals in question fall below these revised thresholds, making them not pressable.

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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