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

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TAXAP/924/2015HC GujaratGJHC24048037201527 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 was not pressed by the Revenue due to the low tax effect, in line with Circular No. 17/2019. This circular establishes monetary limits for appeals before various judicial forums, including the High Court, which was Rs. 1,00,00,000. The court observed that the appeal fell under the category of low tax effect as per the circular. Consequently, the appeal was disposed of accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute.

What were the facts?

This matter concerns a Tax Appeal filed by the Pr. Commissioner of Income-Tax, Gandhinagar, against John Energy Ltd. The appeal was listed for an order due to a low tax effect. The appeal was filed against an order passed by an authority, the details of which are not specified in the provided text. The procedural history indicates that the appeal was notified for passing an appropriate order by the High Court of Gujarat at Ahmedabad.

What were the issues?

The primary issue before the High Court was whether to proceed with the hearing of the Tax Appeal, given the low tax effect. The Revenue (Pr. Commissioner of Income-Tax) argued that the appeal should be disposed of in accordance with Circular No. 17/2019, dated August 8, 2019, which sets monetary limits for filing appeals. The assessee (John Energy Ltd.) did not present any arguments as the appeal was not pressed by the Revenue. The court had to decide on the applicability and consequence of the aforementioned circular on the present appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/924/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 924 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/924/2015 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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