THE PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL AHMEDABAD vs. NAVRATNA ORGANIZERS AND DEVELOPERS P. LTD

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TAXAP/480/2019HC GujaratGJHC24040494201909 September 2019Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 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 Court noted the revised monetary limits for appeals, with Rs. 1,00,00,000 being the threshold for appeals before the High Court. Consequently, the appeal was disposed of in accordance with this circular. The Court also granted liberty to the Revenue to revive the tax appeal in case of any difficulty. The principle derived is that appeals below the prescribed monetary limits, as per CBDT circulars, may not be pursued by the Revenue.

What were the facts?

The Principal Commissioner of Income Tax, Central Ahmedabad (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Navratna Organizers and Developers P. 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, which revised monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The High Court disposed of the appeal accordingly, reserving liberty for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the Tax Appeal is maintainable before the High Court given the low tax effect, considering 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 entire appeal's fate hinged on the applicability of Circular No. 17/2019. Revenue's Contention: The Revenue contended that the appeal should be disposed of in view of the low tax effect, as per Circular No. 17/2019. This circular sets revised monetary limits for filing appeals, and the current appeal falls below the threshold for High Court appeals (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/480/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 480 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL AHMEDABAD Versus NAVRATNA ORGANIZERS AND DEVELOPERS P. LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MS VAIBHAVI K PARIKH(3238) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO

Date : 09/09/2019

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/480/2019 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) (A. C. RAO, J) aruna Page 2 of 2

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