PRINCIPAL COMMISSIONER OF INCOME TAX-2 vs. MARTAND ESTATE PVT. LTD

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TAXAP/895/2016HC GujaratGJHC24052033201627 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 is not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The Court noted the monetary limits stipulated in the circular, specifically that appeals before the High Court have a limit of Rs. 1,00,00,000. Consequently, the appeal was disposed of in accordance with the circular. The Court granted liberty to the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the appeal was disposed of on a procedural ground based on the stated policy.

What were the facts?

The Principal Commissioner of Income Tax-2 (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Martand Estate Pvt. Ltd. (assessee). The appeal was notified for an order due to 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. This circular sets monetary limits for filing appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. The appeal was disposed of based on this circular, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law and fact, concerning the applicability of the CBDT circular). Assessee's Contentions: The assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. The judgment records no argument for the assessee. Revenue's Contentions: The Revenue contended that the appeal should be disposed of in view of the low tax effect, referencing Circular No. 17/2019 dated August 8, 2019. This circular establishes monetary limits for appeals, and the appeal falls below the threshold for High Court appeals (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/895/2016 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 895 of 2016 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-2 Versus MARTAND ESTATE 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) 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. 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/895/2016 ORDER 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, 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) GIRISH Page 2 of 2

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