THE PRINCIPAL COMMISSIONER OF INCOME TAX 1 vs. M/S ADANI GAS LTD

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TAXAP/435/2019HC GujaratGJHC24036744201927 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 decided to dispose of the appeal in accordance with Circular No. 17/2019, dated August 8, 2019, due to the low tax effect. The appeal was not pressed by the Revenue. The Court noted the monetary limits for appeals as per the circular, specifically mentioning that appeals before the High Court have a limit of Rs. 1,00,00,000. The operative direction was to dispose of the appeal accordingly. The Court also granted liberty to the Revenue to revive the tax appeal if any difficulty arose. No specific issue regarding the merits of the assessment was decided.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax (Revenue) against M/s Adani Gas Ltd (Assessee). The appeal was listed for an appropriate order due to a low tax effect. The appeal was to be disposed of in accordance with Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The appeal was not pressed by the Revenue in light of this circular and its low tax effect. The Court reserved liberty for the Revenue to revive the appeal in case of any difficulty.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect as per Circular No. 17/2019? Assessee's Contentions: The judgment does not record any specific contentions made by the assessee. Revenue's Contentions: The Revenue did not press the appeal due to the low tax effect, in compliance with Circular No. 17/2019, dated August 8, 2019. The circular establishes monetary limits for appeals, with appeals before the High Court having a monetary limit of Rs. 1,00,00,000. The Revenue implicitly acknowledged that the tax effect in this appeal fell below the prescribed limit for High Court appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/435/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 435 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX 1 Versus M/S ADANI GAS LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE UNSERVED(68) 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. 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/435/2019 ORDER Sr. No. Appeals/SLPs in Incometax 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) (BHARGAV D. KARIA, J) GIRISH Page 2 of 2

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