THE PRINCIPAL COMMISSIONER OF INCOME TAX 4 vs. SWAGAT INFRASTRUCTURE LTD

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TAXAP/1391/2018HC GujaratGJHC24075748201827 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 noted that the appeal was listed for an appropriate order due to its low tax effect, in accordance with Circular No. 17/2019 dated August 8, 2019. The Revenue stated that the appeal was not pressed in view of this circular and the low tax effect. The circular specifies monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. Since the appeal was not pressed by the Revenue due to the low tax effect, the Court disposed of the appeal accordingly. The Court 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 Tax Appeal No. 1391 of 2018 filed by the Principal Commissioner of Income Tax 4 (the Revenue) against Swagat Infrastructure Ltd (the assessee). The appeal was listed for an appropriate order by the Registry due to its low tax effect. 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. The circular outlines revised monetary limits for filing appeals. The Revenue indicated that the appeal was not pressed due to the low tax effect, referencing the aforementioned circular.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of 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. However, the underlying reason for the appeal not being pressed is the low tax effect, as per the Revenue's stance and the Circular No. 17/2019. Revenue's Contention: The Revenue contended that the appeal should be disposed of in view of the low tax effect, citing Circular No. 17/2019, dated August 8, 2019. This circular establishes monetary limits for filing appeals before various authorities, including the High Court. The appeal was not pressed in view of this policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/1391/2018                                                                                                 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO.  1391 of 2018 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX 4 Versus SWAGAT INFRASTRUCTURE LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MS VAIBHAVI K PARIKH(3238) 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) 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 of Direct Taxes, New Delhi. 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 of Direct Taxes, New Delhi. Page  1 of  2

C/TAXAP/1391/2018                                                                                                 ORDER 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 Monetary Limits (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000 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.) /MOINUDDIN Page  2 of  2

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