COMMISSIONER OF INCOME TAX-IV vs. M/S GARGI CONSTRUCTION CO

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TAXAP/921/2011HC GujaratGJHC24045240201127 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 tax appeal is not pressed in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The Court disposed of the appeal accordingly. The reasoning is based on the new policy reflected in the circular, which sets monetary limits for appeals. The appeal was not pressed by the Revenue, leading to its disposal. The Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. The ratio is that appeals with a low tax effect, as defined by CBDT circulars, can be withdrawn or dismissed without a decision on the merits.

What were the facts?

The Gujarat High Court was considering a tax appeal filed by the Commissioner of Income Tax-IV against M/s Gargi Construction Co. The appeal was listed for passing an appropriate order due to a low tax effect. 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 outlines revised monetary limits for filing appeals. The Court also mentioned the table of monetary limits for appeals before different authorities, including the Income Tax Appellate Tribunal, High Court, and Supreme Court.

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) The Revenue (Commissioner of Income Tax-IV) argued that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The Assessee (M/s Gargi Construction Co.) did not present any arguments as the appeal was not pressed by the Revenue. The judgment does not record any specific arguments from the Assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/921/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 921 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-IV Versus M/S GARGI CONSTRUCTION CO ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE UNSERVED(68) 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/921/2011 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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