PRINCIPAL COMMISSIONER OF INCOME TAX-I vs. ATIT INFRASTRUCTURE PVT LTD

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TAXAP/782/2018HC GujaratGJHC24035693201827 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 held that the Tax Appeal was not pressed by the Revenue in view of the low tax effect, aligning with the provisions of CBDT Circular No. 17/2019. The Court observed the monetary limits for appeals at various levels, including Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal was disposed of in accordance with this circular. The Court explicitly reserved the liberty for the Revenue to revive the Tax Appeal if any difficulty arose. The ratio decidendi is that appeals with a low tax effect, falling below the prescribed monetary limits in CBDT circulars, may not be pressed by the Revenue, leading to their disposal by the High Court.

What were the facts?

The Principal Commissioner of Income Tax-I (Revenue) filed a Tax Appeal before the Gujarat High Court against an order of the Income Tax Appellate Tribunal (ITAT). The appeal was notified for an appropriate order due to a low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes (CBDT). This circular outlines revised monetary limits for filing appeals. The High Court noted the table of monetary limits for appeals before the ITAT, High Court, and Supreme Court. The appeal was disposed of accordingly, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the Tax Appeal filed by the Revenue is maintainable before the High Court, considering the monetary limits prescribed by CBDT Circular No. 17/2019? (Question of law) Assessee's contention: The appeal is not pressed due to the low tax effect, as per Circular No. 17/2019. The circular sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Revenue's contention: The Revenue has not pressed the appeal, citing the low tax effect and the guidelines provided in Circular No. 17/2019. The Revenue acknowledges the monetary limits stipulated in the circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/782/2018                                                                                                 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO.  782 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX­I Versus ATIT INFRASTRUCTURE PVT LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 DARSHAN R PATEL(8486) 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) 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 of Direct Taxes, New Delhi. 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 of Direct Taxes, New Delhi. Page  1 of  2

C/TAXAP/782/2018                                                                                                 ORDER 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 Limits (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000 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.) /MOINUDDIN Page  2 of  2

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