THE PRINCIPAL COMMISSIONER OF INCOME TAX, VADODARA 3 vs. M/S SHRI GANESH KHAND UDHYOG SAHAKARI MANDALI LTD

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TAXAP/526/2019HC GujaratGJHC24036865201909 October 2019Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE MS. JUSTICE SANGEETA K. VISHEN2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the appeal should be disposed of as not pressed. The reasoning was based on the appellant's submission that the tax effect involved was less than Rs. 1,00,00,000/-. This submission was made in light of Circular No. 17 of 2019 dated 08.08.2019, which mandates that appeals with a tax effect below Rs. 1,00,00,000/- should not be filed before the High Court and is applicable retrospectively to pending appeals. Therefore, the appellant's counsel did not press the appeal. The operative direction was to dispose of the appeal as not pressed. However, the appellant was granted liberty to seek revival of the appeal if there was any error in the computation of the tax effect or if the circular was not applicable for any reason. No issue was expressly left undecided.

What were the facts?

The appellant, Principal Commissioner of Income Tax, Vadodara, filed a Tax Appeal before the High Court of Gujarat at Ahmedabad. The appeal was against an order or action by the Income Tax Appellate Tribunal (ITAT) concerning M/s Shri Ganesh Khand Udyog Sahakari Mandali Ltd. The assessment year(s) are not specified. The procedural history is that the appeal was listed for hearing. During the hearing, the learned senior standing counsel for the appellant stated that the tax effect involved in the appeal was less than Rs. 1,00,00,000/-. This statement was made in the context of a government circular.

What were the issues?

1. Whether the present appeal, where the tax effect is less than Rs. 1,00,00,000/-, should be entertained by the High Court, considering the Circular No. 17 of 2019 dated 08.08.2019. The assessee (appellant) argued that the tax effect involved in the appeal is less than Rs. 1,00,00,000/-. Relying on Circular No. 17 of 2019 dated 08.08.2019, which stipulates that no appeal with a tax effect not exceeding Rs. 1,00,00,000/- shall be filed before the High Court and which is retrospectively applicable to pending appeals, the appellant stated that they do not press the present appeal. The revenue (respondent) did not record any arguments in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/526/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 526 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX, VADODARA 3 Versus M/S SHRI GANESH KHAND UDHYOG SAHAKARI MANDALI LTD ========================================================== Appearance: MR.VARUN K.PATEL(3802) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE MS. JUSTICE SANGEETA K. VISHEN

Date : 09/10/2019 ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mr.Varun K. Patel, learned senior standing counsel for the appellant and Mr.B.S. Soparkar, learned advocate for the respondent. 2. Mr. Varun K. Patel, learned senior standing counsel for the appellant, has stated that the tax effect involved in this appeal is less than Rs.1,00,00,000/-. Under the circumstances, in the light of the Circular No.17 of 2019 dated 08.08.2019 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, which provides that no appeal wherein the tax effect does not exceed the monetary limit of Rs.1,00,00,000/- shall be filed before the High Court and which has also been made retrospectively applicable to Page 1 of 2

C/TAXAP/526/2019 ORDER pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. 3. The appeal is, accordingly, disposed of as not pressed in light of the Circular dated 08.08.2019. However, in case there is any error in the computation of the tax effect involved or if, for any reason, the Circular is not applicable, it would be open for the appellant to seek revival of the appeal. (HARSHA DEVANI, J) (SANGEETA K. VISHEN,J) RAVI P. PATEL Page 2 of 2

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