PRINCIPAL COMMISSIONER OF INCOME TAX-2 vs. M/S.KUNVARJI FINANCE PVT.LTD.

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TAXAP/612/2015HC GujaratGJHC24047907201527 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 of Gujarat decided that the appeal was not pressed by the Revenue due to the low tax effect, in accordance with Circular No. 17/2019. The Court noted the monetary limits stipulated in the circular for appeals before the Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). Consequently, the appeal was disposed of in line with this policy. The Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue on the merits of the assessment was decided.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-2 (the Revenue) against M/s. Kunvarji Finance Pvt. Ltd. (the Assessee). The appeal was listed for an appropriate order by the High Court of Gujarat. The appeal was notified due to its low tax effect. The Court was to consider Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in light of Circular No. 17/2019? (Question of law) Assessee's Contention: The appeal is not pressed by the Revenue due to the low tax effect, as per Circular No. 17/2019. The circular provides monetary limits for appeals before various authorities, including the High Court. Revenue's Contention: The judgment records no specific contention from the Revenue regarding the merits of the appeal. The appeal's disposal is based on the low tax effect policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/612/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 612 of 2015 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-2 Versus M/S.KUNVARJI FINANCE PVT.LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) for the Opponent(s) No. 1 RULE SERVED(64) 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. Page 1 of 2

C/TAXAP/612/2015 ORDER 3. According to the new policy as reflected from the Circular referred to above, the table for monetary limits is as follows: Sr.No. Appeals/SLPs in Income-tax matters Monetray

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) PALAK Page 2 of 2

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