PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL, AHMEDABAD vs. ULHAS SECURITIES PVT. LTD.

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TAXAP/79/2019HC GujaratGJHC24010865201909 September 2019Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that both tax appeals were disposed of as not pressed. The decision was based on the low tax effect and the policy articulated in Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular establishes monetary limits for filing appeals before various authorities, including the High Court, where the limit is Rs. 1,00,00,000. The Court explicitly stated that the appeals were not pressed in view of this circular. The Court also reserved the liberty for the Revenue to revive the tax appeals in case of any difficulty. No specific findings were made on the merits of the original assessment or any specific legal provisions were discussed beyond the context of the circular.

What were the facts?

These are two tax appeals filed by the Principal Commissioner of Income Tax, Central, Ahmedabad, against Ulhas Securities Pvt. Ltd. The appeals were listed for appropriate orders due to low tax effect. The Court noted that the appeals were to be disposed of in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines new monetary limits for filing appeals. The appeals were not pressed by the Revenue in view of the low tax effect and the policy reflected in the aforementioned circular.

What were the issues?

1. Whether the appeals, having a low tax effect, should be disposed of in accordance with Circular No. 17/2019 dated August 8, 2019, of the Central Board of Direct Taxes? The Assessee (Ulhas Securities Pvt. Ltd.) did not present any arguments as the appeals were not pressed by the Revenue. The Revenue (Principal Commissioner of Income Tax, Central, Ahmedabad) argued that the appeals should be disposed of in light of Circular No. 17/2019, which sets monetary limits for appeals. The Revenue stated that the appeals were not pressed due to the low tax effect, aligning with the new policy outlined in the circular. The Revenue relied on Circular No. 17/2019.

AI-generated summary — verify with the full judgment below

C/TAXAP/91/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 91 of 2019 With R/TAX APPEAL NO. 79 of 2019 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL , AHMEDABAD Versus ULHAS SECURITIES PVT. LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE UNSERVED(68) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO

Date : 09/09/2019

COMMON ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 1. The Registry has notified the captioned appeals for the purpose of passing appropriate orders. The captioned appeals have been notified because of the low tax effect. These appeals are 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. Both the tax appeals are 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 Page 1 of 2

C/TAXAP/91/2019 ORDER to above, the table for monetary limits is as follows: 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, both the appeals are disposed of accordingly. In case of any difficulty, we reserve the liberty for the Revenue to revive the tax appeal. (J. B. PARDIWALA, J) (A. C. RAO, J) aruna Page 2 of 2

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