COMMISSIONER OF INCOME TAX-III vs. NEPTUNE OVERSEAS LTD

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TAXAP/919/2011HC GujaratGJHC24045239201127 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 due to the low tax effect, in accordance with Circular No. 17/2019. The circular establishes monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. Since the tax effect in this appeal is below this limit, the Revenue has chosen not to pursue it. The Court disposed of the appeal accordingly. However, liberty was reserved for the Revenue to revive the tax appeal in case of any difficulty. No specific findings on the merits of the original assessment or the grounds of appeal were made, as the appeal was decided on a procedural basis.

What were the facts?

This is a tax appeal filed by the Commissioner of Income Tax-III (Revenue) against Neptune Overseas Ltd (Assessee). The appeal was notified for an appropriate order due to low tax effect. The appeal is being disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines new monetary limits for filing appeals. The appeal was not pressed by the Revenue in view of these revised limits.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? Assessee's Contention: The assessee has not recorded any specific contentions in the judgment. However, the appeal is being disposed of based on the Revenue's decision not to press it due to low tax effect. Revenue's Contention: The Revenue contends that the appeal is not pressed in view of the low tax effect, as per Circular No. 17/2019, dated August 8, 2019. The circular specifies monetary limits for appeals, and this 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/919/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 919 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-III Versus NEPTUNE OVERSEAS 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 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/919/2011 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) aruna Page 2 of 2

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