PRINCIPAL COMMISSIONER OF INCOME TAX 1 vs. AIA ENGINEERING LTD

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TAXAP/351/2018HC GujaratGJHC24011257201807 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 Tax Appeal. The reasoning was based on the understanding and application of Circular No. 17/2019 issued by the CBDT. This circular provides guidelines on the monetary limits for filing appeals. As the tax effect in this particular appeal was low, the Revenue chose not to press the appeal. The Court accepted this position and disposed of the appeal accordingly. The operative direction was to dispose of the appeal, with liberty reserved for the Revenue to revive it in case of any difficulty. No specific finding was made on the merits of the original assessment or the grounds of appeal, as the appeal was not pressed.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax (Revenue) against AIA Engineering Ltd (Assessee). The appeal was notified for an appropriate order by the High Court of Gujarat at Ahmedabad. The primary reason for the notification and subsequent disposal of the appeal was its low tax effect, as per Circular No. 17/2019 dated 8th August 2019, issued by the Central Board of Direct Taxes. The circular outlines monetary limits for filing appeals before various authorities, including the High Court. The appeal was not pressed by the Revenue due to this low tax effect.

What were the issues?

1. Whether the appeal should be entertained by the High Court given the low tax effect, considering the CBDT Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not present any arguments as the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue argued that the appeal should be disposed of in light of Circular No. 17/2019, which sets monetary limits for appeals. The appeal was not pressed due to the low tax effect, falling below the threshold stipulated in the circular for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/351/2018 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 351 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 1 Versus AIA ENGINEERING LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MS VAIBHAVI K PARIKH(3238) 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/351/2018 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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