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

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TAXAP/251/2019HC GujaratGJHC24036407201909 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 the Tax Appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The Court noted the revised monetary limits for appeals before the High Court as Rs. 1,00,00,000. Since the appeal was not pressed, the Court disposed of the appeal accordingly. The reasoning was based on the administrative policy decision of the Central Board of Direct Taxes to streamline litigation and focus on cases with significant tax implications. The Court explicitly reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue regarding the merits of the original assessment or the order under challenge was decided.

What were the facts?

The Pr. Commissioner of Income Tax, Rajkot I (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against an order concerning Friends Oil and Chemical Terminals Pvt. Ltd. (the Assessee). The appeal was notified for 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 revised monetary limits for filing appeals. The circular specifies monetary limits for appeals before the Income Tax Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). The High Court disposed of the appeal accordingly, reserving liberty for the Revenue to revive it if any difficulty arose.

What were the issues?

1. Whether the Tax Appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contentions: The Assessee did not make any specific contentions as the appeal was not pressed by the Revenue. The judgment does not record any arguments from the Assessee's side. 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 dated August 8, 2019. This circular sets revised monetary limits for filing appeals before various judicial forums, including the High Court. The Revenue indicated that the tax effect in this particular appeal fell below the revised threshold, making it not pressable.

AI-generated summary — verify with the full judgment below

C/TAXAP/251/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 251 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/251/2019 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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