PRINCIPAL COMMISSIONER OF INCOME TAX-3 RAJKOT vs. SHANTI STRUCTURE PVT. LTD.

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TAXAP/245/2017HC GujaratGJHC24056873201727 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 appeal was not pressed by the appellant (Revenue) in view of the low tax effect, as per Circular No. 17/2019. The circular specifies that appeals before the High Court should not be filed if the tax effect is below Rs. 1,00,00,000. Consequently, the appeal was disposed of accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute, as the appeal was decided on procedural grounds related to the tax effect policy.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-3, Rajkot, against Shanti Structure Pvt. Ltd. The appeal was listed for an order due to a low tax effect. The appeal was to be disposed of in accordance with 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 monetary limits for filing appeals. The appeal was not pressed by the appellant in view of the low tax effect as per the aforementioned circular.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect as per Circular No. 17/2019. Assessee's Contention: The assessee did not explicitly argue any point as the appeal was not pressed by the Revenue. However, the appeal was disposed of based on the Revenue's decision to not press it due to low tax effect. Revenue's Contention: The Revenue submitted that the appeal was not pressed in view of the low tax effect, referencing Circular No. 17/2019. The circular establishes monetary limits for appeals before various authorities, with appeals before the High Court having a monetary limit of Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/245/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 245 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-3 RAJKOT Versus SHANTI STRUCTURE 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 referred to above, the table for monetary limits is as follows: Page 1 of 2

C/TAXAP/245/2017 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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