PR. COMMISSIONER OF INCOME - TAX - GANDHINAGAR vs. GUJARAT STATE ENERGY GENERATION LTD

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TAXAP/320/2017HC GujaratGJHC24056903201707 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court decided to dispose of the appeal as not pressed. The reasoning was based on Circular No. 17/2019, which establishes monetary limits for filing appeals. The circular indicates that appeals with a tax effect below a certain threshold (Rs. 1,00,00,000 for High Court appeals) may not be pursued. Since the present appeal fell under this category due to low tax effect, the Revenue chose not to press it. The court noted that the appeal is disposed of in accordance with the circular. The liberty to revive the tax appeal was reserved for the Revenue in case of any difficulty. No specific finding was made on the merits of the original dispute.

What were the facts?

The appeal was filed by the Principal Commissioner of Income-tax, Gandhinagar (Revenue) against Gujarat State Energy Generation Ltd (Assessee). The appeal was notified for passing an appropriate order due to 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. This circular sets monetary limits for filing appeals. The appeal was disposed of based on this circular, 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. Assessee's Contentions: The assessee did not file any specific contentions in the judgment. Revenue's Contentions: The Revenue argued that the appeal should be disposed of in view of the low tax effect, citing Circular No. 17/2019. The Revenue stated that the appeal was not pressed due to this circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/320/2017 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 320 of 2017 ========================================================== PR. COMMISSIONER OF INCOME - TAX - GANDHINAGAR Versus GUJARAT STATE ENERGY GENERATION LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) 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 MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

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 8 th 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 8 th 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/320/2017 ORDER DATED: 07/01/2022 Sr. No. Appeals/SLPs in Income-tax 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) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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