PRINCIPAL COMMISSIONER OF INCOME TAX vs. GUJARAT STATE PETROLEUM CORPORATION LIMITED

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TAXAP/908/2017HC GujaratGJHC24057182201707 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 Tax Appeal is not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The Court noted the monetary limits specified in the circular for appeals before different judicial forums. Given that the appeal's tax effect was below the prescribed limit for High Court appeals, it was disposed of accordingly. The Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect amount or the assessment year(s) were not recorded in the judgment.

What were the facts?

The Principal Commissioner of Income Tax (Revenue) filed a Tax Appeal before the Gujarat High Court challenging an order. The appeal was filed against Gujarat State Petroleum Corporation Limited (Assessee). The appeal was notified for passing an appropriate order due to its low tax effect. The Court considered Circular No. 17/2019, dated August 8, 2019, issued by the CBDT, which provides monetary limits for filing appeals. The circular outlines limits for appeals before the Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). The present appeal falls under the category of low tax effect as per this circular.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, considering the CBDT Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not make any specific arguments as the appeal was not pressed by the Revenue. The judgment indicates the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue stated that the appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019. The Revenue relied on the policy reflected in the said circular, which sets monetary limits for appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/908/2017 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 908 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX Versus GUJARAT STATE PETROLEUM CORPORATION LIMITED ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 G H VIRK(7392) for the Opponent(s) No. 1 RULE SERVED(64) 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/908/2017 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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