PRINCIPAL COMMISSIONER OF INCOME TAX-2 vs. MEDHBHUTI COMPLEX PVT LTD

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TAXAP/894/2016HC GujaratGJHC24052032201607 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal was not pressed by the appellant (Principal Commissioner of Income Tax-2) 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. Since the appeal was not pressed and fell within the ambit of the circular's policy regarding low tax effect, the court disposed of the appeal accordingly. 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, as the appeal was not pressed.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax-2 against Medhbhuti Complex Pvt Ltd. The appeal was listed for passing an appropriate order by the High Court of Gujarat. The reason for the listing was the low tax effect of the appeal. The court noted that the appeal was 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 sets out monetary limits for filing appeals. The appeal was not pressed by the appellant due to the low tax effect.

What were the issues?

The primary issue before the High Court was how to dispose of the appeal given the low tax effect and the policy outlined in Circular No. 17/2019. The court had to decide whether to proceed with the merits of the appeal or to dispose of it based on the monetary limits specified in the circular. The appellant (Revenue) argued that the appeal should be disposed of in accordance with Circular No. 17/2019 due to the low tax effect. The respondent (Assessee) did not present any arguments as the appeal was not pressed by the Revenue. The judgment does not explicitly state the specific tax effect or the assessment year(s) involved.

AI-generated summary — verify with the full judgment below

C/TAXAP/894/2016 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 894 of 2016 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-2 Versus MEDHBHUTI COMPLEX PVT LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) 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 MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 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 8 th 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 8 th 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 to above, the table for monetary limits is as follows:- Page 1 of 2

C/TAXAP/894/2016 ORDER DATED: 07/01/2022 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. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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