THE PRINCIPAL COMMISSIONER OF INCOME TAX-1 vs. AURA SECURITIES PVT. LTD.

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TAXAP/452/2019HC GujaratGJHC24043491201927 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 of Gujarat at Ahmedabad disposed of the Tax Appeal. The Court noted that the appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. This circular establishes monetary limits for appeals, with a limit of Rs. 1,00,00,000 for appeals before the High Court. Since the tax effect was below this limit, the Revenue chose not to pursue the appeal. The Court disposed of the appeal accordingly and reserved liberty for the Revenue to revive the appeal in case of any difficulty. No specific finding on the merits of the original dispute was made.

What were the facts?

The Principal Commissioner of Income Tax-1 (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Aura Securities Pvt. Ltd. (assessee). The appeal was notified for an appropriate order due to low tax effect. The appeal was to be disposed of in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The appeal was not pressed by the Revenue in view of this circular and the low tax effect.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect as per Circular No. 17/2019? (Question of law) Assessee's contention: The appeal is not pressed due to the low tax effect, citing Circular No. 17/2019. The circular specifies monetary limits for appeals before various authorities, and the tax effect in this case falls below the threshold for High Court appeals. Revenue's contention: The judgment records no specific contention from the Revenue other than their participation in the proceedings and the subsequent decision to not press the appeal. The decision to not press the appeal is based on the circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/452/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 452 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX-1 Versus AURA SECURITIES PVT. LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) 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/452/2019 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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