PRINCIPAL COMMISSIONER OF INCOME TAX 1 vs. ADANI INFRASTRUCTURE SERVICES PVT. LTD.

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TAXAP/258/2018HC GujaratGJHC24018675201827 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 of Gujarat held that the appeal was not pressed by the Revenue. This decision was based on Circular No. 17/2019, dated August 8, 2019, which established revised monetary limits for filing appeals. The Court noted that the appeal was notified for disposal due to a low tax effect. The operative direction was to dispose of the appeal accordingly. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific finding on the merits of the original tax dispute is not recorded as the appeal was not pressed.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax (Revenue) against Adani Infrastructure Services Pvt. Ltd. (Assessee). The specific assessment year(s) are not mentioned in the judgment. The appeal was filed before the High Court of Gujarat at Ahmedabad. 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 revised monetary limits for filing appeals.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law) The Revenue's contention was that the appeal was not pressed in view of the low tax effect, citing Circular No. 17/2019. The Assessee's contentions are not recorded in the judgment. The Circular specifies monetary limits for appeals before different authorities, with appeals before the High Court having a monetary limit of Rs. 1,00,00,000. The judgment implies that the tax effect in this appeal fell below this prescribed limit, leading to the decision not to press the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/258/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 258 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 1 Versus ADANI INFRASTRUCTURE SERVICES PVT. LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) 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/258/2018 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) KUMAR ALOK Page 2 of 2

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