PRINCIPAL COMMISSONER OF INCOME TAX, RAJKOT-1 vs. JYOTI CNC AUTOMATION PVT LTD

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TAXAP/687/2018HC GujaratGJHC24035895201827 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 held that the Tax Appeal was not pressed by the Revenue. This decision was made in consideration of Circular No. 17/2019, dated August 8, 2019, which establishes monetary limits for filing appeals. Specifically, appeals before the High Court have a monetary limit of Rs. 1,00,00,000. Since the appeal was not pressed due to the low tax effect, it was disposed of accordingly. The Court reserved 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.

What were the facts?

The Principal Commissioner of Income Tax, Rajkot-1 (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Jyoti CNC Automation Pvt Ltd (the Assessee). The appeal was notified for an appropriate order due to low tax effect. The High Court noted that 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.

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 assessee did not explicitly argue, but the appeal was not pressed by the Revenue in view of the low tax effect, implying acceptance of this ground for disposal. Revenue's Contention: The Revenue stated that the appeal was not pressed in view of the low tax effect, referencing Circular No. 17/2019, which sets monetary limits for appeals before the High Court at Rs. 1,00,00,000. The appeal was filed under these circumstances.

AI-generated summary — verify with the full judgment below

C/TAXAP/687/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 687 of 2018 ========================================================== PRINCIPAL COMMISSONER OF INCOME TAX, RAJKOT-1 Versus JYOTI CNC AUTOMATION PVT LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 DARSHAN R PATEL(8486) 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/687/2018 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) KUMAR ALOK Page 2 of 2

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