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

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TAXAP/613/2015HC GujaratGJHC24047908201527 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 decided to dispose of the Tax Appeal as it was not pressed by the revenue in view of the low tax effect. The court explicitly referred to Circular No. 17/2019, which establishes monetary limits for filing appeals. For appeals before the High Court, the monetary limit is Rs. 1,00,00,000. The court noted that the appeal was being disposed of in accordance with this policy. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue regarding the merits of the original assessment or the order under challenge was decided.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-2 against M/s. Kunvarji Finance Pvt. Ltd. The appeal was listed for an order due to a low tax effect. The appeal was filed against an order passed by an authority under the Income Tax Act, though the specific authority and the assessment year(s) are not detailed in this excerpt. The core reason for the appeal's listing and subsequent disposal was the monetary limit set by Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes.

What were the issues?

The Tribunal had to decide whether to proceed with the appeal given the low tax effect as per Circular No. 17/2019. The revenue argued that the appeal was not pressed due to the low tax effect, referencing the aforementioned circular. The assessee's contentions are not recorded. The circular outlines monetary limits for appeals before various authorities, including High Courts, which was the forum for this appeal. The appeal was to be disposed of in accordance with this policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/613/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 613 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 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. Page 1 of 2

C/TAXAP/613/2015 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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