PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL , AHMEDABAD vs. ULHAS SECURITIES PVT. LTD.

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TAXAP/91/2019HC GujaratGJHC24010866201909 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 both tax appeals were disposed of as not pressed, in view of the low tax effect and in accordance with Circular No. 17/2019 dated August 8, 2019. The Court noted the 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) as stipulated in the circular. The Court reserved liberty for the Revenue to revive the tax appeals in case of any difficulty. The principle is that appeals with low tax effect, below prescribed monetary limits, can be withdrawn or not pressed based on CBDT circulars, leading to their dismissal without merits.

What were the facts?

These two tax appeals, R/TAX APPEAL NO. 91 of 2019 and R/TAX APPEAL NO. 79 of 2019, were filed by the Principal Commissioner of Income Tax, Central, Ahmedabad, against Ulhas Securities Pvt. Ltd. The appeals were brought before the High Court of Gujarat at Ahmedabad. The appeals were notified for appropriate orders due to low tax effect. The Court was to dispose of these appeals in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes.

What were the issues?

1. Whether the appeals, having a low tax effect, should be disposed of in accordance with Circular No. 17/2019 of the CBDT? (Question of law and procedure) The Revenue contended that both tax appeals were not pressed in view of the low tax effect, as per Circular No. 17/2019. The circular outlines monetary limits for filing appeals before various authorities. The Revenue relied on this circular to justify not pressing the appeals. No specific arguments were recorded for the Assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/91/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 91 of 2019 With R/TAX APPEAL NO. 79 of 2019 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL , AHMEDABAD Versus ULHAS SECURITIES PVT. LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE UNSERVED(68) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO

Date : 09/09/2019

COMMON ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 1. The Registry has notified the captioned appeals for the purpose of passing appropriate orders. The captioned appeals have been notified because of the low tax effect. These appeals are 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. Both the tax appeals are 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 Page 1 of 2

C/TAXAP/91/2019 ORDER to above, the table for monetary limits is as follows: 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, both the appeals are 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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