COMMISSIONER OF INCOME TAX GANDHINAGAR vs. GUJARAT POWER CORPORATION LTD

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TAXAP/826/2011HC GujaratGJHC24045185201131 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 disposed of the Tax Appeal. The decision was based on the Revenue's decision not to press the appeal due to its low tax effect, as per Circular No. 17/2019. This circular establishes monetary limits for appeals, with a limit of Rs. 1,00,00,000 for appeals before the High Court. The Court noted that if any difficulty arises, the Revenue reserves the liberty to revive the tax appeal. No specific findings on the merits of the original assessment or the grounds of appeal were made, as the appeal was disposed of on procedural grounds related to the monetary policy for appeals.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax, Gandhinagar, against Gujarat Power Corporation Ltd. The appeal was filed before the High Court of Gujarat at Ahmedabad. The appeal was notified for passing an appropriate order due to its low tax effect. The decision to dispose of the appeal was made in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which outlines monetary limits for filing appeals.

What were the issues?

1. Whether the appeal should be disposed of due to low tax effect, considering Circular No. 17/2019? Assessee's Contention: The assessee (Gujarat Power Corporation Ltd.) did not explicitly argue any points as the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue (Commissioner of Income Tax, Gandhinagar) did not press the appeal in view of the low tax effect, citing Circular No. 17/2019. The circular specifies 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/826/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 826 of 2011 ========================================================== COMMISSIONER OF INCOME TAX GANDHINAGAR Versus GUJARAT POWER CORPORATION 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 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/826/2011 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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