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

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TAXAP/436/2019HC GujaratGJHC24036743201927 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 as not pressed. The reasoning was based on the Revenue's submission that the appeal was being withdrawn due to a low tax effect, in accordance with Circular No. 17/2019. This circular establishes monetary limits for appeals before various authorities, including the High Court, where the limit is Rs. 1,00,00,000. The Court noted that if any difficulty arises, the Revenue reserves the liberty to revive the tax appeal. No decision on the substantive merits of the appeal was made.

What were the facts?

This matter concerns Tax Appeal No. 436 of 2019 filed by the Principal Commissioner of Income Tax 1 (the Revenue) against M/s Adani Gas Ltd (the assessee). The appeal was listed for an appropriate order. The Revenue notified the appeal for disposal due to a low tax effect, referencing Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular provides monetary limits for filing appeals. The appeal was not pressed by the Revenue in light of this circular and its associated monetary limits.

What were the issues?

The primary issue before the High Court was whether to proceed with the appeal given the low tax effect as per CBDT Circular No. 17/2019. The Revenue's contention was that the appeal should be disposed of without a decision on merits due to the low tax effect, as stipulated by the circular. The judgment does not record any specific arguments from the assessee regarding this procedural matter. The question of law, implicitly, revolves around the application of the CBDT circular in determining the maintainability of the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/436/2019 ORDER DATED: 27/01/2020 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 436 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 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 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, 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/436/2019 ORDER DATED: 27/01/2020 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 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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