PRINCIPAL COMMISSIONER OF INCOME TAX-2 vs. MASTEK LTD.

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TAXAP/589/2017HC GujaratGJHC24057023201707 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat, in consideration of Circular No. 17/2019 and the fact that the appeal was not pressed by the Revenue due to low tax effect, disposed of the appeal. The court noted the monetary limits prescribed by the circular for appeals before the High Court, which is Rs. 1,00,00,000. The court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the merits of the original assessment were not adjudicated upon.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-2 (Revenue) against Mastek Ltd. (Assessee). The appeal was listed for an appropriate order by the High Court of Gujarat. The appeal was notified for disposal due to its low tax effect, in accordance with 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 Revenue in light of this circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? Assessee's Contention: The judgment records no specific contention from the assessee. However, the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue argued that the appeal should be disposed of due to the low tax effect, referencing Circular No. 17/2019. The circular provides monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. The appeal was not pressed in view of this circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/589/2017 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 589 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-2 Versus MASTEK LTD. ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

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 8 th 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 8 th 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/589/2017 ORDER DATED: 07/01/2022 Sr. No. Appeals/SLPs in Income-tax 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) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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