THE PRI.COMMISSIONER OF THE INCOME TAX-1 vs. GUJARAT PAGUTHAN ENERGY CORPORATION PVT.LTD.

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TAXAP/712/2015HC GujaratGJHC24047958201527 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 at Ahmedabad decided that the tax appeal was not pressed by the Revenue due to the low tax effect, in line with Circular No. 17/2019. The Court noted the monetary limits specified in the circular for appeals before the High Court (Rs. 1,00,00,000). Consequently, the appeal was disposed of accordingly. 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?

The appeal, C/TAXAP/712/2015, was filed by the Principal Commissioner of Income Tax-1 (the Revenue) against Gujarat Paguthan Energy Corporation Pvt. Ltd. (the assessee). The appeal was listed for an order regarding its disposal. The primary reason for the listing was the low tax effect of the appeal. The High Court of Gujarat at Ahmedabad was to pass an appropriate order considering Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not present any arguments as the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue stated that the tax appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019. The Circular outlines monetary limits for filing appeals before various authorities, including the High Court, which is Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/712/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 712 of 2015 ========================================================== THE PRI.COMMISSIONER OF THE INCOME TAX-1 Versus GUJARAT PAGUTHAN ENERGY CORPORATION 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 ========================================================== 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/712/2015 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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