COMMISSIONER OF INCOME TAX GANDHINAGAR vs. GUJARAT POWER CORPORATION LTD

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TAXAP/202/2013HC GujaratGJHC24043304201327 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 tax appeal. The reasoning was based on the Revenue's submission that the appeal was not pressed due to a low tax effect, aligning with the policy outlined in Circular No. 17/2019. This circular establishes monetary limits for appeals, with a threshold of Rs. 1,00,00,000 for appeals before the High Court. The Court noted that the appeal is disposed of in accordance with this circular. The ratio decidendi is that appeals with a tax effect below the prescribed monetary limits in CBDT circulars may be withdrawn or not pressed by the Revenue. The operative direction is the disposal of the appeal. The Court explicitly reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

This matter concerns Tax Appeal No. 202 of 2013 filed by the Commissioner of Income Tax, Gandhinagar (the Revenue) against Gujarat Power Corporation Ltd (the assessee). The appeal was listed for an appropriate order by the Registry. The appeal was notified for disposal considering the low tax effect, in line with Circular No. 17/2019 dated 8th August, 2019, issued by the Central Board of Direct Taxes. The circular outlines monetary limits for filing appeals. The appeal is being disposed of 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) Assessee's Contention: The assessee did not present any arguments as the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue stated that the appeal is not pressed in view of the low tax effect, referencing Circular No. 17/2019. The circular sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The Revenue indicated that the appeal is disposed of accordingly, reserving liberty to revive it in case of difficulty.

AI-generated summary — verify with the full judgment below

C/TAXAP/202/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 202 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/202/2013 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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