COMMISSIONER OF INCOME TAX (TDS) vs. GUJARAT MARITIME BOARD

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TAXAP/102/2015HC GujaratGJHC24047688201527 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, citing Circular No. 17/2019. This circular establishes monetary limits for appeals, with Rs. 1,00,000 being the threshold for appeals before the High Court. Consequently, the appeal was disposed of in accordance with this policy. The court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The principle established is that appeals falling below the stipulated monetary limits, as per CBDT circulars, may not be pursued, leading to their disposal without a decision on the merits.

What were the facts?

The appeal before the High Court of Gujarat was filed by the Commissioner of Income Tax (TDS) against Gujarat Maritime Board. The appeal was notified for an order due to low tax effect. The High Court noted Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,000 for appeals before the High Court. The appeal was disposed of in light of this circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in light of Circular No. 17/2019? (Question of law) Assessee's contention: The assessee (Gujarat Maritime Board) did not explicitly argue any points as the appeal was not pressed. The judgment states the appeal is not pressed in view of the low tax effect and the aforementioned circular. Revenue's contention: The revenue (Commissioner of Income Tax (TDS)) did not press the appeal due to the low tax effect, as per Circular No. 17/2019. The circular establishes monetary limits for appeals, with Rs. 1,00,000 being the limit for High Court appeals. The revenue relied on this circular to justify not proceeding with the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/102/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 102 of 2015 ========================================================== COMMISSIONER OF INCOME TAX (TDS) Versus GUJARAT MARITIME BOARD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 G H VIRK(7392) 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/102/2015 ORDER Sr. No. Appeals/SLPs in Incometax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,000 3 Before Supreme Court 2,00,000 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) CHANDRESH Page 2 of 2

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