PRINCIPAL COMMISSIONER OF INCOME TAX vs. SUJAL LEASING AND FINANCE P. LTD

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TAXAP/376/2016HC GujaratGJHC24051761201627 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 held that the appeal is not pressed in view of the low tax effect, as per Circular No. 17/2019. The court noted the monetary limits for appeals before various judicial forums, including Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal was disposed of accordingly. The court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original dispute was made.

What were the facts?

The Principal Commissioner of Income Tax (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against an order concerning Sujal Leasing and Finance P. Ltd. (Assessee). The appeal was notified for passing an appropriate order due to a low tax effect. The appeal was not pressed by the Revenue in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in light of CBDT Circular No. 17/2019? The Revenue argued that the appeal is not pressed due to the low tax effect, referencing CBDT Circular No. 17/2019. The judgment does not record any specific arguments from the Assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/376/2016 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 376 of 2016 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX Versus SUJAL LEASING AND FINANCE P. 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. Page 1 of 2

C/TAXAP/376/2016 ORDER 3. According to the new policy as reflected from the Circular referred to above, the table for monetary limits is as follows: Sr.No. Appeals/SLPs in Income-tax matters Monetray

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) PALAK Page 2 of 2

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