PRINCIPAL COMMISSIONER OF INCOME TAX vs. J.P. INFRASTRUCTURE PVT. LTD.

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TAXAP/550/2017HC GujaratGJHC24057005201727 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court noted that the appeal was notified due to low tax effect and was to be disposed of in accordance with Circular No. 17/2019. The appellant explicitly stated that the tax appeal was not pressed in view of the low tax effect, referencing the said circular. The circular provides monetary limits for appeals before various authorities, including the High Court at Rs. 1,00,00,000. Consequently, the appeal was disposed of accordingly. The court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original dispute was made as the appeal was not pressed.

What were the facts?

The Principal Commissioner of Income Tax filed a tax appeal before the High Court of Gujarat at Ahmedabad against J.P. Infrastructure Pvt. Ltd. The appeal was notified for an appropriate order due to low tax effect. The appeal was to be disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The appeal was not pressed by the appellant in view of the low tax effect as per the aforementioned circular.

What were the issues?

1. Whether the tax appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? The appellant (Revenue) argued that the appeal was not pressed in view of the low tax effect, citing Circular No. 17/2019. The respondent (Assessee) did not record any arguments. The issue revolves around the applicability of the CBDT's policy on monetary limits for appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/550/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 550 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX Versus J.P. INFRASTRUCTURE PVT. LTD. ========================================================== Appearance: MR.VARUN K.PATEL(3802) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) for the Opponent(s) No. 1 RULE UNSERVED(68) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA

Date : 27/01/2020

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 Page 1 of 2

C/TAXAP/550/2017 ORDER to above, the table for monetary limits is as follows: 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) (BHARGAV D. KARIA, J) GIRISH Page 2 of 2

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