Gujarat HC Disposes Revenue Appeal as Tax Effect Was Below CBDT Monetary Limit

PCIT Vs Saumya Construction Pvt. Ltd. (Gujarat High Court)

The Gujarat High Court considered a tax appeal that had been listed for appropriate orders because of its low tax effect. The appeal was required to be examined in light of CBDT Circular No. 17/2019 dated 8 August 2019 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes.

The Revenue did not press the appeal in view of the low tax effect and the monetary limits prescribed under the Circular. The Court noted that the revised policy prescribed monetary limits of ₹50 lakh for appeals before the Appellate Tribunal, ₹1 crore for appeals before the High Court, and ₹2 crore for appeals before the Supreme Court.

In view of the CBDT Circular and the Revenue’s decision not to pursue the matter due to the low tax effect, the High Court disposed of the appeal. The Court, however, reserved liberty in favour of the Revenue to seek revival of the tax appeal if any difficulty arose.

FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT

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 8^th 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 8^th 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:-

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.