COMMISSIONER OF INCOME TAX GANDHINAGAR vs. GUJARAT GAS TRADING CO LTD

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TAXAP/356/2018HC GujaratGJHC24011301201807 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 of Gujarat at Ahmedabad 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 8th August, 2019. The Court noted the monetary limits for appeals before various authorities as per the circular, with appeals before the High Court having a monetary limit of Rs. 1,00,00,000. Consequently, the appeal was disposed of in accordance with this policy. The Court 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 was decided.

What were the facts?

The Commissioner of Income Tax, Gandhinagar (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Gujarat Gas Trading Co. Ltd. (the assessee). The appeal was notified for passing an appropriate order due to its low tax effect. The appeal was filed against an order passed by an authority, the details of which are not specified in the judgment. The procedural history indicates that the appeal reached the High Court. The amount in dispute is not explicitly stated but is implied to be below the monetary limit for appeals to the High Court as per the relevant circular.

What were the issues?

1. Whether the Tax Appeal filed by the Revenue is to be dismissed on the grounds of low tax effect, in light of Circular No. 17/2019? The Revenue argued that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The assessee's contentions are not recorded in the judgment. The judgment does not explicitly state the specific provision of the Income Tax Act under which the original assessment or dispute arose, but the appeal itself is filed under the Income Tax Act.

AI-generated summary — verify with the full judgment below

C/TAXAP/356/2018 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 356 of 2018 ========================================================== COMMISSIONER OF INCOME TAX GANDHINAGAR Versus GUJARAT GAS TRADING CO 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/356/2018 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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