THE PRINCIPAL COMMISSIONER OF INCOME TAX-1 vs. AURA SECURITIES PVT. LTD

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TAXAP/451/2019HC GujaratGJHC24043490201927 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 of Gujarat at Ahmedabad decided to dispose of the Tax Appeal. The appeal was not pressed by the Revenue due to a low tax effect, in accordance with Circular No. 17/2019. This circular sets monetary limits for appeals, with the limit for appeals before the High Court being Rs. 1,00,00,000. The court noted that if the Revenue faced any difficulty, they reserved the liberty to revive the tax appeal. 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-1 against Aura Securities Pvt. Ltd. The appeal was brought before the High Court of Gujarat at Ahmedabad. The appeal was notified for an appropriate order due to a low tax effect. The court's decision was to be made in consideration of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. The circular outlines monetary limits for filing appeals. The appeal was not pressed by the Revenue.

What were the issues?

1. Whether the Tax Appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. However, the appeal's disposal was based on the Revenue's decision influenced by the Circular. Revenue's Contention: The Revenue submitted that the appeal was not pressed in view of the low tax effect, citing Circular No. 17/2019. This circular establishes monetary limits for appeals before various authorities, including the High Court, which was Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/451/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 451 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX-1 Versus AURA SECURITIES PVT. 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. 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/451/2019 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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