COMMISSIONER OF INCOME TAX II vs. JAY INFA TRADE PVT LTD

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TAXAP/239/2013HC GujaratGJHC24043316201327 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 disposed of in view of the low tax effect, as per Circular No. 17/2019. The Court noted the policy outlined in the circular, which specifies monetary limits for appeals. Specifically, for appeals before the High Court, the monetary limit is Rs. 1,00,00,000. Since the appeal was not pressed by the Revenue due to its low tax effect, the Court decided to dispose of the appeal accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the assessment year(s) were not recorded in the judgment.

What were the facts?

The Commissioner of Income Tax II (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Jay Infa Trade Pvt Ltd (the assessee). The appeal was notified for passing an appropriate order due to low tax effect. The Revenue stated that the appeal was not pressed in view of the low tax effect, referencing Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The High Court noted the policy and reserved liberty for the Revenue to revive the appeal in case of any difficulty.

What were the issues?

1. Whether the Tax Appeal filed by the Revenue should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? Assessee's Contentions: The assessee did not present any arguments as the appeal was not pressed by the Revenue. The judgment does not record any specific contentions from the assessee. Revenue's Contentions: The Revenue contended that the appeal should be disposed of in view of the low tax effect, citing Circular No. 17/2019. This circular establishes monetary limits for appeals before various authorities, including the High Court, and suggests that appeals below a certain threshold may not be pressed.

AI-generated summary — verify with the full judgment below

C/TAXAP/239/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 239 of 2013 ========================================================== COMMISSIONER OF INCOME TAX II Versus JAY INFA TRADE PVT LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE SERVED(64) 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 Page 1 of 2

C/TAXAP/239/2013 ORDER referred to above, the table for monetary limits is as follows: 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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