PRINCIPAL COMMISSIONER OF INCOME TAX 1 vs. AXIS BANK LIMITED

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TAXAP/883/2018HC GujaratGJHC24032036201827 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the appeals are not pressed due to low tax effect, in line with Circular No. 17/2019 dated August 8, 2019. The circular establishes monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. The Tribunal noted that the present appeals fall under this category and are being disposed of accordingly. The reasoning is based on the new policy outlined in the circular, which aims to streamline litigation based on monetary thresholds. The operative direction is that the appeals are disposed of. The Tribunal also reserved the liberty for the Revenue to revive the Tax Appeals in case of any difficulty. No specific issue was left undecided.

What were the facts?

The Principal Commissioner of Income Tax (Revenue) filed two Tax Appeals, R/TAX APPEAL NO. 883 of 2018 and R/TAX APPEAL NO. 884 of 2018, against Axis Bank Limited (Assessee). The appeals were notified for an appropriate order due to low tax effect. The appeals were filed against an order or action by an unspecified authority for assessment year(s) not specified in the judgment. The amount in dispute is not explicitly stated but is implied to be below the monetary limits for appeals.

What were the issues?

1. Whether the appeals should be dismissed due to low tax effect, considering Circular No. 17/2019 dated August 8, 2019 (question of law). Assessee's Contention: The appeals are not pressed in view of the low tax effect, citing Circular No. 17/2019. The assessee relies on the monetary limits prescribed in the circular for appeals before the High Court. Revenue's Contention: The revenue has not recorded any specific contention in the judgment. However, by filing the appeals, the revenue implicitly sought to challenge the lower authority's decision.

AI-generated summary — verify with the full judgment below

C/TAXAP/883/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 883 of 2018 With R/TAX APPEAL NO. 884 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 1 Versus AXIS BANK LIMITED ========================================================== 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 Appeals for the purpose of passing an appropriate order. The captioned Appeals have been notified because of the low tax effect. The 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 of Direct Taxes, New Delhi. These 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 of Direct Taxes, New Delhi. Page 1 of 2

C/TAXAP/883/2018 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 Appeals are disposed of accordingly. In case of any difficulty, we reserve the liberty for the Revenue to revive the Tax Appeals. (J. B. PARDIWALA, J.) (BHARGAV D. KARIA, J.) /MOINUDDIN Page 2 of 2

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