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

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TAXAP/453/2019HC GujaratGJHC24043492201927 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 tax appeal is not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The circular establishes monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. The appeal was disposed of in accordance with this policy. The Court reserved liberty for the Revenue to revive the tax appeal if any difficulty arises. No specific findings on the merits of the case were made as the appeal was not pressed.

What were the facts?

The Principal Commissioner of Income Tax-1 (Revenue) filed a tax appeal before the High Court of Gujarat at Ahmedabad against Aura Securities Pvt. Ltd. (Assessee). The appeal was notified for an appropriate order due to low tax effect. The Revenue decided not to press the appeal in light of 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 disposed of accordingly, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? The Revenue argued that the appeal is not pressed in view of the low tax effect, citing Circular No. 17/2019. The Assessee's arguments are not recorded in the judgment. The operative part of the judgment indicates the appeal is being disposed of based on the Revenue's submission regarding the circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/453/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 453 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/453/2019 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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