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

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TAXAP/457/2017HC GujaratGJHC24056961201707 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated 8th August, 2019. The Court noted the monetary limits specified in the circular for appeals before different authorities, including Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal was disposed of accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the appeal was disposed of based on the stated reason.

What were the facts?

The appeal, C/TAXAP/457/2017, was filed by the Principal Commissioner of Income Tax-2 (the Revenue) against Gruh Finance Ltd. (the assessee). The High Court of Gujarat at Ahmedabad was notified to pass an appropriate order regarding this appeal. The appeal was listed for disposal due to its low tax effect, in accordance with Circular No. 17/2019 dated 8th August, 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 the established monetary limit for appeals before the High Court.

What were the issues?

1. Whether the appeal should be disposed of on the grounds of low tax effect as per Circular No. 17/2019? (Question of law) The Revenue argued that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The circular provides monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. The Revenue relied on this circular to justify not pressing the appeal. The assessee's contentions are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/457/2017 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 457 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-2 Versus GRUH FINANCE LTD. ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) 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 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. The 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/457/2017 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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