COMMISSIONER OF INCOME TAX-I vs. AGARWAL CARGO CARRIERS

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TAXAP/2294/2010HC GujaratGJHC24046384201009 September 2019Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the Tax Appeal is not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The circular sets out revised monetary limits for appeals, with appeals before the High Court having a monetary limit of Rs. 1,00,00,000. The appeal was disposed of accordingly. The Court also granted liberty to 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 No specific finding was made on the merits of the original dispute, as the appeal was withdrawn by the appellant.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax-I (the Revenue) against Agarwal Cargo Carriers (the assessee). The appeal was filed before the High Court of Gujarat at Ahmedabad. The appeal was notified for an appropriate order due to low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes, which revised monetary limits for filing appeals. The circular specifies monetary limits for appeals before the Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). The High Court reserved liberty for the Revenue to revive the appeal in case of difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in light of Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not make any specific arguments recorded in the judgment. The appeal was not pressed by the Revenue. Revenue's Contention: The Revenue submitted that the appeal is not pressed in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. This circular establishes revised monetary limits for filing appeals, and the current appeal falls below the threshold for High Court appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/2294/2010 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 2294 of 2010 ========================================================== COMMISSIONER OF INCOME TAX-I Versus AGARWAL CARGO CARRIERS ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR RUTURAJ NANAVATI(5624) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO

Date : 09/09/2019

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/2294/2010 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) (A. C. RAO, J) aruna Page 2 of 2

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