PR.COMMISSIONER OF INCOME -TAX-GANDHINAGAR vs. JOHN ENERGY LTD.

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TAXAP/921/2015HC GujaratGJHC24048034201527 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 appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The Court noted the revised monetary limits for appeals before the High Court, which is Rs. 1,00,00,000. The appeal was disposed of accordingly. The Court also granted liberty to the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the assessment year(s) were not recorded in the judgment. No issue was expressly left undecided; the appeal was disposed of on procedural grounds.

What were the facts?

This matter concerns a Tax Appeal filed by the Pr. Commissioner of Income-Tax, Gandhinagar (the Revenue) against John Energy Ltd. (the Assessee). The appeal was listed for an order due to its 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 outlines revised monetary limits for filing appeals. The appeal was disposed of based on this policy, with liberty reserved for the Revenue to revive it if any difficulty arose.

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) Assessee's Contention: The Assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. The judgment does not record any specific arguments from the Assessee. Revenue's Contention: The Revenue argued that the appeal should be disposed of in accordance with Circular No. 17/2019, dated August 8, 2019, due to the low tax effect. This circular sets monetary limits for appeals before various judicial forums, including the High Court. The Revenue relied on this circular to justify not pressing the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/921/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 921 of 2015 ========================================================== PR.COMMISSIONER OF INCOME -TAX-GANDHINAGAR Versus JOHN ENERGY LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR SN DIVATIA(1378) for the Opponent(s) No. 1 RULE SERVED(64) 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. Page 1 of 2

C/TAXAP/921/2015 ORDER 3. According to the new policy as reflected from the Circular referred to above, the table for monetary limits is as follows: Sr.No. Appeals/SLPs in Income-tax matters Monetray

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) PALAK Page 2 of 2

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