PRINCIPAL COMMISSIONER OF INCOME TAX-3 RAJKOT vs. SHANTI CONSTRUCTION CO.

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TAXAP/238/2017HC GujaratGJHC24056869201727 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 held that the tax appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019 dated August 8, 2019. This circular introduces new monetary limits for appeals. For appeals before the High Court, the monetary limit is Rs. 1,00,00,000. The appeal was disposed of accordingly. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the original dispute amount was not recorded in the judgment.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-3, Rajkot, against Shanti Construction Co. The appeal was listed for an order due to a low tax effect. The appeal was notified for the purpose of passing an appropriate order in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. The circular outlines new monetary limits for filing appeals. The appeal is to be disposed of keeping these new policy guidelines in mind.

What were the issues?

1. Whether the appeal should be dismissed due to a low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contentions: The assessee did not present any specific contentions as the appeal was not pressed. The judgment states that the appeal is not pressed in view of the low tax effect and the aforementioned circular. Revenue's Contentions: The revenue, through its representative, did not press the appeal. The decision to not press the appeal is based on the low tax effect and the guidelines provided in Circular No. 17/2019, which sets monetary limits for appeals. The revenue is adhering to this new policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/238/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 238 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-3 RAJKOT Versus SHANTI CONSTRUCTION CO. ========================================================== 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 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/238/2017 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) (BHARGAV D. KARIA, J) GIRISH Page 2 of 2

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