COMMISSIONER OF INCOME TAX GANDHINAGAR vs. GUJARAT POWER CORPORATION LTD

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TAXAP/201/2013HC GujaratGJHC24043303201327 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 decided to dispose of the appeal 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). The reasoning was that the appeal fell within the category of those not to be pressed due to the low tax effect. The operative direction was to dispose of the appeal accordingly. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

This is a Tax Appeal filed by the Commissioner of Income Tax, Gandhinagar, against Gujarat Power Corporation Ltd. The appeal was listed for an appropriate order by the High Court of Gujarat at Ahmedabad. The primary reason for the listing and subsequent disposal was the low tax effect of the appeal, as per Circular No. 17/2019 issued by the Central Board of Direct Taxes. The circular outlines revised monetary limits for filing appeals by the revenue before various judicial forums. The appeal was not pressed by the appellant due to this low tax effect.

What were the issues?

1. Whether the appeal should be entertained by the High Court given the low tax effect, in light of Circular No. 17/2019 issued by the CBDT? (Question of law and fact) The Revenue's contention was that the appeal was not pressed due to the low tax effect, as per the revised policy of the Government of India. The Revenue relied on Circular No. 17/2019, dated 8th August, 2019, which sets monetary limits for appeals. The judgment does not record any specific arguments from the Assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/201/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 201 of 2013 ========================================================== COMMISSIONER OF INCOME TAX GANDHINAGAR Versus GUJARAT POWER CORPORATION LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR SN DIVATIA(1378) 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 Page 1 of 2

C/TAXAP/201/2013 ORDER referred to above, the table for monetary limits is as follows: Sr. No. Appeals/SLPs in Income Tax 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

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) Vahid Page 2 of 2

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