PRINCIPAL COMMISSIONER OF INCOME TAX - 2 vs. J. UPENDRA CONSTRUCTION PVT. LTD.

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TAXAP/982/2017HC GujaratGJHC24057225201727 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 in view of the low tax effect, as per Circular No. 17/2019. The Court noted the revised monetary 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). 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. The principle is that appeals below the stipulated monetary limits, as per the CBDT's policy, may not be pursued.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax - 2 against J. Upendra Construction Pvt. Ltd. The matter was brought before the High Court of Gujarat at Ahmedabad. The appeal was notified for an appropriate order due to low tax effect. The Court was to consider Circular No. 17/2019, dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals. The appeal was listed for disposal based on this circular.

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 assessee (Revenue) argued that the appeal is not pressed in view of the low tax effect, referencing Circular No. 17/2019. The judgment does not record any specific arguments from the assessee (J. Upendra Construction Pvt. Ltd.). The core of the matter revolves around the applicability of the aforementioned circular which sets monetary limits for appeals before various judicial forums, including the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/982/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 982 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX - 2 Versus J. UPENDRA CONSTRUCTION PVT. LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(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. 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/982/2017 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) KUMAR ALOK Page 2 of 2

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