THE PRINCIPAL COMMISSIONER OF INCOME TAX 1 vs. M/S ADANI GAS LTD

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TAXAP/432/2019HC GujaratGJHC24036746201927 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the appeal should be disposed of in accordance with Circular No. 17/2019, dated August 8, 2019, due to the low tax effect. The reasoning is that the appeal was not pressed by the appellant (Revenue) in light of the monetary limits and policy set forth in the circular. The ratio decidendi is that appeals with a low tax effect, as defined by the CBDT circular, are to be withdrawn or not pressed. The operative direction is that the appeal is disposed of accordingly. The court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

The appeal, C/TAXAP/432/2019, was filed by the Principal Commissioner of Income Tax 1 against M/s Adani Gas Ltd. The appeal was notified for an order due to a low tax effect. The judgment references Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for appeals. The appeal was not pressed by the appellant in light of this circular and its low tax effect. The court reserved liberty for the Revenue to revive the appeal in case of any difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to a low tax effect, as per Circular No. 17/2019? The appellant (Revenue) argued that the appeal was not pressed in view of the low tax effect and the policy outlined in Circular No. 17/2019. The respondent (Assessee) did not record any specific arguments in the judgment. The issue revolves around the applicability of the CBDT circular to the present appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/432/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 432 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX 1 Versus M/S ADANI GAS 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/432/2019 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) GIRISH Page 2 of 2

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