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

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TAXAP/482/2019HC GujaratGJHC24040493201909 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 was not pressed by the Revenue. This decision was made in consideration of Circular No. 17/2019, dated August 8, 2019, which establishes monetary limits for appeals. Specifically, the circular sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Since the appeal in question had a low tax effect, falling below this prescribed limit, the Revenue chose not to pursue it. The Court disposed of the appeal accordingly. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax, Central Ahmedabad, against Navratna Organizers and Developers P. Ltd. The appeal was listed for an appropriate order due to a low tax effect. The appeal was to be disposed of in accordance with Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines new monetary limits for filing appeals. The appeal was not pressed by the Revenue in light of this circular and the stated monetary limits for appeals before the High Court, which is Rs. 1,00,00,000.

What were the issues?

1. Whether the Tax Appeal should be dismissed due to a low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's contention: The appeal is not pressed by the Revenue in view of the low tax effect and the guidelines provided in Circular No. 17/2019, which sets monetary limits for appeals. The appeal falls below the threshold for appeals before the High Court. Revenue's contention: The judgment records no specific contention from the Revenue other than their decision not to press the appeal based on the circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/482/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 482 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/482/2019 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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