PRINCIPAL COMMISSIONER OF INCOME TAX-2 vs. GRUH FINANCE LTD.

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TAXAP/456/2017HC GujaratGJHC24056960201727 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 was not pressed by the appellant, the Principal Commissioner of Income Tax-2, in view of the low tax effect and the policy stipulated in Circular No. 17/2019. The circular establishes monetary limits for appeals before various authorities, including the High Court. The court disposed of the appeal accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the case.

What were the facts?

This is a tax appeal filed by the Principal Commissioner of Income Tax-2 against Gruh Finance Ltd. The appeal was notified for an appropriate order due to a low tax effect. The appeal was disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. The circular outlines monetary limits for filing appeals. The appeal was not pressed by the appellant in view of this circular and the low tax effect.

What were the issues?

1. Whether the appeal should be dismissed due to a low tax effect, as per Circular No. 17/2019? The appellant, Principal Commissioner of Income Tax-2, argued that the appeal was not pressed in view of the low tax effect and the policy outlined in Circular No. 17/2019. The respondent, Gruh Finance Ltd., did not present any arguments as the appeal was not pressed by the appellant.

AI-generated summary — verify with the full judgment below

C/TAXAP/456/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 456 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-2 Versus GRUH FINANCE LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) for the Opponent(s) No. 1 RULE SERVED(64) 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/456/2017 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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