PRINCIPAL COMMISSIONER OF INCOME TAX-4 vs. VARIA ENGINEERING WORKS PVT. LTD.
What did the High Court hold?
The High Court decided to dispose of the appeal in view of the low tax effect and the policy outlined in Circular No. 17/2019. The Revenue explicitly stated that the appeal was not pressed. Consequently, the appeal was disposed of in accordance with the circular's provisions. The Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific findings on the merits of the original assessment or the lower appellate orders were made, as the appeal was not pressed.
What were the facts?
This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-4 (the Revenue) against Varia Engineering Works Pvt. Ltd. (the assessee). The appeal was listed for an appropriate order. The appeal was notified due to its low tax effect. The High Court of Gujarat at Ahmedabad was considering the appeal.
What were the issues?
The primary issue before the High Court was whether to proceed with the appeal given its low tax effect. The Revenue, through its counsel, indicated that the appeal was not pressed. This decision was made in light of Circular No. 17/2019, dated 8th August 2019, issued by the Central Board of Direct Taxes, which outlines monetary limits for filing appeals. The circular specifies monetary limits for appeals before the Income Tax Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). The Revenue's stance was based on this policy.
AI-generated summary — verify with the full judgment below
C/TAXAP/432/2018 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 432 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-4 Versus VARIA ENGINEERING WORKS PVT. LTD. ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 RULE SERVED(64) 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. Thse 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/432/2018 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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