THE PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL,AHMEDABAD vs. SURAJ LIMITED

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TAXAP/760/2015HC GujaratGJHC24047982201527 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 appeal was not pressed by the Revenue in view of the low tax effect, as per CBDT Circular No. 17/2019. The circular sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Since the appeal was not pressed and fell within the scope of the circular, the Court disposed of the appeal accordingly. The Court reserved the liberty for 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 No specific finding was made on the merits of the original dispute, as the appeal was withdrawn by the Revenue.

What were the facts?

The Principal Commissioner of Income Tax, Central, Ahmedabad (Revenue) filed two Tax Appeals, C/TAXAP/759/2015 and C/TAXAP/760/2015, against Suraj Limited (Assessee). The appeals were notified for an appropriate order due to low tax effect. The appeals were to be disposed of in accordance with Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes (CBDT). This circular outlines monetary limits for filing appeals before various authorities. The appeal was not pressed by the Revenue.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect as per CBDT Circular No. 17/2019. (Question of law) Assessee's Contention: The assessee did not make any arguments as the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue stated that the appeal was not pressed in view of the low tax effect, citing CBDT Circular No. 17/2019. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The Revenue relied on this circular to withdraw the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/759/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 759 of 2015 With R/TAX APPEAL NO. 760 of 2015 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL,AHMEDABAD Versus SURAJ LIMITED ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR YOGEN N PANDYA(5766) 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. Page 1 of 2

C/TAXAP/759/2015 ORDER 3. According to the new policy as reflected from the Circular referred to above, the table for monetary limits is as follows: Sr.No. Appeals/SLPs in Income-tax matters Monetray

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) PALAK Page 2 of 2

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