PRINCIPAL COMMISSIONER OF INCOME TAX 3 vs. GEMSTONE GLASS PVT. LTD.

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TAXAP/255/2019HC GujaratGJHC24036267201909 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 due to the low tax effect, in accordance with Circular No. 17/2019. The circular establishes monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. Since the appeal fell within the scope of this circular and was not pressed, the court disposed of the appeal accordingly. The Revenue was granted liberty to revive the tax appeal in case of any difficulty. The specific tax effect or the assessment year(s) were not explicitly stated in the judgment.

What were the facts?

The Principal Commissioner of Income Tax 3 (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Gemstone Glass Pvt. Ltd. (the assessee). The appeal was notified for an appropriate order due to a low tax effect. The Revenue sought to dispose of the appeal in light of 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 appeal was not pressed by the Revenue.

What were the issues?

1. Whether the Tax Appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law and fact, concerning the applicability of the CBDT Circular). The Revenue contended that the appeal was not pressed in view of the low tax effect, referencing Circular No. 17/2019, which sets monetary limits for appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The Revenue relied on this circular to justify not pursuing the appeal. The assessee's contentions were not recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/255/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 255 of 2019 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 3 Versus GEMSTONE GLASS PVT. LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR SP MAJMUDAR(3456) 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/255/2019 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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