PRINCIPAL COMMISSIONER OF INCOME TAX vs. SAURASHTRA CEMENT LTD

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TAXAP/747/2018HC GujaratGJHC24038590201827 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 not pressed. The reasoning was based on the appellant's (Revenue's) decision not to press the appeal due to the low tax effect, as guided by Circular No. 17/2019. The circular specifies monetary limits for appeals, and the appeal in question fell below the threshold for High Court appeals. The court granted liberty to the Revenue to revive the tax appeal if any difficulty arose. No specific finding on the merits of the original dispute was made, as the appeal was disposed of on procedural grounds related to the tax effect.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax against Saurashtra Cement Ltd. The appeal was notified for an appropriate order due to low tax effect. The appeal was not pressed by the appellant in light of Circular No. 17/2019 dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The High Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? Assessee's contention: The assessee did not explicitly argue, but the appeal was not pressed by the appellant (Revenue) in view of the low tax effect and the aforementioned circular. Revenue's contention: The Revenue did not press the appeal due to the low tax effect, citing Circular No. 17/2019. The circular establishes monetary limits for 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/747/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 747 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX Versus SAURASHTRA CEMENT LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(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. 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/747/2018 ORDER Sr. No. Appeals/SLPs in Income­tax 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) (BHARGAV D. KARIA, J) KUMAR ALOK Page 2 of 2

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