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

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TAXAP/433/2019HC GujaratGJHC24036741201927 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 tax appeal is disposed of in view of the low tax effect and the policy outlined in Circular No. 17/2019. The court noted the revised monetary limits for appeals before the High Court, which is Rs. 1,00,00,000. The appeal was disposed of accordingly. The court also granted liberty to the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute, as the appeal was not pressed. The ratio is that appeals with a low tax effect, below the prescribed monetary limits in CBDT circulars, may be withdrawn or not pressed by the Revenue.

What were the facts?

This matter concerns a tax appeal filed by the Principal Commissioner of Income Tax (Revenue) against Ms. Adani Gas Ltd. (Assessee). The appeal was notified for an order due to a low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals. The appeal was disposed of based on these revised limits, with liberty reserved for the Revenue to revive the appeal if any difficulty arose.

What were the issues?

1. Whether the appeal should be dismissed due to a low tax effect, as per Circular No. 17/2019? The Revenue argued that the appeal was not pressed in view of the low tax effect and the policy reflected in Circular No. 17/2019, which sets monetary limits for appeals before the High Court at Rs. 1,00,00,000. The Assessee did not record any arguments. The judgment does not specify the assessment year(s) or the specific amount in dispute, nor does it detail the procedural history leading to this appeal before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/433/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 433 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX 1 Versus MS/ 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/433/2019 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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