COMMISSIONER OF INCOME-TAX (INTERNATIONAL TAXATION AND TRANSFER PRICING) vs. SHELL GLOBAL SOLUTIONS INTERNATIONAL B.V. THE NETHERLANDS

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TAXAP/657/2019HC GujaratGJHC24042697201930 September 2019Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE MS. JUSTICE SANGEETA K. VISHEN2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the appeal should be disposed of as not pressed. The reasoning was based on the submission by the learned senior standing counsel for the appellant that the tax effect involved was less than Rs. 1,00,00,000/-. In light of CBDT Circular No. 17 of 2019, which stipulates that no appeal with a tax effect not exceeding Rs. 1,00,00,000/- shall be filed before the High Court and which has retrospective applicability to pending appeals, the appellant did not press the appeal. The ratio is that appeals below a certain monetary threshold, as per a relevant circular, may be withdrawn or not pressed. The operative direction is that the appeal is disposed of as not pressed. The judgment notes that if there is any error in the computation of the tax effect or if the circular is not applicable for any reason, the appellant can seek revival of the appeal. No issue was expressly left undecided.

What were the facts?

The appeal was filed by the Commissioner of Income-Tax (International Taxation and Transfer Pricing) against Shell Global Solutions International B.V., The Netherlands. The assessment year(s) are not specified. The appeal challenges an order or action of an authority, which is not detailed. The amount in dispute is stated to be less than Rs. 1,00,00,000/-. The procedural history is that the learned senior standing counsel for the appellant, citing CBDT Circular No. 17 of 2019, stated that the tax effect was below the monetary limit for filing appeals before the High Court and therefore did not press the appeal.

What were the issues?

1. Whether the present appeal, involving a tax effect less than Rs. 1,00,00,000/-, is maintainable before the High Court in light of CBDT Circular No. 17 of 2019. The assessee (Revenue) argued that the appeal should not be pressed as the tax effect is below the threshold stipulated in CBDT Circular No. 17 of 2019, which is applicable retrospectively to pending appeals. The revenue relied on Circular No. 17 of 2019 dated 08.08.2019. The judgment does not record any arguments from the respondent (assessee).

AI-generated summary — verify with the full judgment below

C/TAXAP/657/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 657 of 2019 ========================================================== COMMISSIONER OF INCOME-TAX (INTERNATIONAL TAXATION AND TRANSFER PRICING) Versus SHELL GLOBAL SOLUTIONS INTERNATIONAL B.V. THE NETHERLANDS ========================================================== Appearance: MR.VARUN K.PATEL(3802) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE MS. JUSTICE SANGEETA K. VISHEN

Date : 30/09/2019 ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mr.Varun K. Patel, learned senior standing counsel for the appellant and Mr.B.S. Soparkar, learned advocate for the respondent. 2. Mr. Varun K. Patel, learned senior standing counsel for the appellant, has stated that the tax effect involved in this appeal is less than Rs.1,00,00,000/-. Under the circumstances, in the light of the Circular No.17 of 2019 dated 08.08.2019 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, which provides that no appeal wherein the tax effect does not exceed the monetary limit of Rs.1,00,00,000/- shall be filed before the High Court and which Page 1 of 2

C/TAXAP/657/2019 ORDER has also been made retrospectively applicable to pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. 3. The appeal is, accordingly, disposed of as not pressed in light of the Circular dated 08.08.2019. However, in case there is any error in the computation of the tax effect involved or if, for any reason, the Circular is not applicable, it would be open for the appellant to seek revival of the appeal. (HARSHA DEVANI, J) (SANGEETA K. VISHEN,J) RAVI P. PATEL Page 2 of 2

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