PRINCIPAL COMMISSIONER OF INCOME TAX-3, AHMEDABAD vs. PRASAND MACHINERY PVT. LTD

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TAXAP/436/2016HC GujaratGJHC24051786201627 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 provisions of Circular No. 17/2019. The Revenue had indicated that the appeal was not pressed. The court noted the monetary limits specified in the circular for appeals before the High Court (Rs. 1,00,00,000). The operative direction is that the appeal is disposed of. The court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the disposal was based on the non-pressing of the appeal.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-3, Ahmedabad, against Prasand Machinery Pvt. Ltd. The appeal was brought before the High Court of Gujarat at Ahmedabad. The appeal was notified for an appropriate order due to its low tax effect. The court was to consider Circular No. 17/2019, dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The appeal was not pressed by the Revenue in light of this circular and its low tax effect.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, considering Circular No. 17/2019? (Question of law and fact) The Revenue argued that the appeal was not pressed in view of the low tax effect, referencing Circular No. 17/2019. This circular establishes monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. The assessee did not present any arguments as the appeal was not pressed by the Revenue.

AI-generated summary — verify with the full judgment below

C/TAXAP/436/2016 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 436 of 2016 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-3, AHMEDABAD Versus PRASAND MACHINERY PVT. 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/436/2016 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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