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

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TAXAP/483/2019HC GujaratGJHC24040495201909 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 reasoning is based on the revised monetary limits for filing appeals, where the appeal falls below the threshold for High Court appeals. The ratio decidendi is that appeals with a low tax effect, as defined by CBDT circulars, should be disposed of without a detailed examination of merits. The operative direction is that the appeal is disposed of accordingly. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

The Principal Commissioner of Income Tax, Central, Ahmedabad (the Revenue) filed a tax appeal before the High Court of Gujarat at Ahmedabad against Navratna Organizers and Developers P. Ltd (the assessee). The appeal was notified for an appropriate order due to a 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 monetary limits for appeals before the Income Tax Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). 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 appeal should be dismissed due to low tax effect as per Circular No. 17/2019? (Question of law). The Revenue's contention is that the appeal is not pressed due to the low tax effect, referencing Circular No. 17/2019. The assessee's contentions are not recorded in the judgment. The judgment does not explicitly state the specific grounds of appeal or the amount in dispute, other than it being considered a 'low tax effect' case.

AI-generated summary — verify with the full judgment below

C/TAXAP/483/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 483 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/483/2019 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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