PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL, AHMEDABAD, vs. VENUS INFRASTRUCTURE AND DEVELOPERS LIMITED

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TAXAP/754/2018HC GujaratGJHC24037945201831 July 2020Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH,HONOURABLE MR. JUSTICE J.B.PARDIWALA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat held that the appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The Court referred to the table of monetary limits provided in the circular, which specifies a limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal was 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 finding was made on the merits of the original dispute.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax, Central, Ahmedabad, against Venus Infra-structure and Developers Limited. The appeal was listed for an appropriate order. The High Court of Gujarat noted that the appeal was being considered in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which deals with monetary limits for filing appeals. The appeal was specifically notified due to its low tax effect.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, in accordance with Circular No. 17/2019? The Revenue (Principal Commissioner of Income Tax) argued that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The judgment does not record any specific arguments from the assessee (Venus Infra-structure and Developers Limited) on this point, other than their role as the opponent in the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/754/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 754 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL, AHMEDABAD, Versus VENUS INFRASTRUCTURE AND DEVELOPERS LIMITED ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE SERVED(64) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA

Date : 31/07/2020

ORAL ORDER (PER : HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH) 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/754/2018 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 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. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) ALI ISTAYAK Page 2 of 2

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