THE PRINCIPAL COMMISSIONER OF INCOME TAX vs. MEENA AGENCY PVT.LTD.

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TAXAP/989/2015HC GujaratGJHC24048057201527 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 filed by the Principal Commissioner of Income Tax. The court acknowledged that the appeal was not pressed by the Revenue due to a low tax effect, referencing Circular No. 17/2019 dated August 8, 2019. This circular establishes monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. Given that the appeal was not pressed in light of this policy, the court disposed of it accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original assessment or the order under challenge was made, as the appeal was disposed of on procedural grounds related to the appeal filing policy.

What were the facts?

The Principal Commissioner of Income Tax filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against an order concerning Meena Agency Pvt. Ltd. The appeal was listed for an appropriate order due to a low tax effect. The court noted that the appeal was being disposed of in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes, which outlines monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

What were the issues?

1. Whether the Tax Appeal filed by the Revenue is to be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? Assessee's Contention: The assessee (implicitly, as the appeal is not pressed) relies on Circular No. 17/2019, which provides revised monetary limits for filing appeals, suggesting the current appeal falls below these limits and should be disposed of accordingly. Revenue's Contention: The Revenue has not recorded any specific contention against the application of Circular No. 17/2019. The appeal is noted as 'not pressed' by the Revenue in view of the low tax effect and the aforementioned circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/989/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 989 of 2015 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX Versus MEENA AGENCY PVT.LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR TUSHAR P HEMANI(2790) for the Opponent(s) No. 1 MS VAIBHAVI K PARIKH(3238) 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/989/2015 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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