PRINCIPAL COMMISSIONER OF INCOME TAX vs. SURAJ LIMITED

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TAXAP/640/2017HC GujaratGJHC24057050201707 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 held that the Tax Appeal was not pressed by the Revenue in view of the low tax effect, aligning with Circular No. 17/2019. The court acknowledged the policy reflected in the circular, which sets monetary limits for appeals at various levels. Consequently, the appeal was disposed of in accordance with this policy. The court reserved 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?

The Principal Commissioner of Income Tax (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against an order concerning Suraj Limited (Assessee). The appeal was notified for passing an appropriate order due to low tax effect. The court noted that the appeal was not pressed by the Revenue in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board Direct Taxes. This circular outlines monetary limits for filing appeals. The court referred to the table within the circular, which specifies monetary limits 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). The appeal was disposed of accordingly.

What were the issues?

The primary issue before the High Court was whether to proceed with the hearing of the Tax Appeal filed by the Revenue, given the low tax effect and the policy outlined in Circular No. 17/2019. The Revenue contended that the appeal was not pressed due to the low tax effect, as per the aforementioned circular. The Assessee's contentions are not recorded in the judgment. The court was to decide on the appropriate course of action for the appeal based on the circular and the Revenue's stance.

AI-generated summary — verify with the full judgment below

C/TAXAP/640/2017 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 640 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX Versus SURAJ LIMITED ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MS VAIBHAVI K PARIKH(3238) 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/640/2017 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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