PR. COMMISSIONER OF INCOME TAX, RAJKOT I vs. FRIENDS OIL AND CHEMICAL TERMINALS PVT. LTD.

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TAXAP/250/2019HC GujaratGJHC24036406201909 September 2019Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal held that the appeal is not pressed by the Revenue in view of the low tax effect and the guidelines provided in Circular No. 17/2019. The Circular establishes a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Since the appeal falls within the scope of this circular, it is disposed of without a decision on the merits of the case. The ratio decidendi is that appeals with a low tax effect, as defined by CBDT circulars, may not be pursued by the Revenue. The operative direction is that the appeal is disposed of, with liberty reserved for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

The Principal Commissioner of Income Tax, Rajkot I, filed a Tax Appeal before the High Court of Gujarat at Ahmedabad. The appeal was against an order passed by an authority under the Income Tax Act. The appeal was notified for passing an appropriate order due to a low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The appeal was disposed of accordingly, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect as per Circular No. 17/2019? The Revenue argued that the appeal is not pressed in view of the low tax effect and the policy reflected in Circular No. 17/2019, which specifies monetary limits for appeals before various authorities, including the High Court (Rs. 1,00,00,000). The Assessee did not record any arguments as the appeal was not pressed by the Revenue.

AI-generated summary — verify with the full judgment below

C/TAXAP/250/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 250 of 2019 ========================================================== PR. COMMISSIONER OF INCOME TAX, RAJKOT I Versus FRIENDS OIL AND CHEMICAL TERMINALS 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 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/250/2019 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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