THE PRIN. COMMISSIONER OF INCOME TAX-6 vs. NEHAL HASMUKHARI GANDHI

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TAXAP/639/2019HC GujaratGJHC24055534201909 September 2019Author: 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 was not pressed by the Revenue. This decision was based on Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. The circular outlines monetary limits for filing appeals, stipulating that appeals before the High Court should not be filed if the tax effect is Rs. 1,00,00,000 or less. The Court found that the tax effect in the present case was below this threshold. Consequently, the appeal was disposed of in accordance with this circular. The operative direction was to dispose of the appeal as not pressed.

What were the facts?

This is a tax appeal filed by the Revenue (The Principal Commissioner of Income Tax-6) against an order concerning the assessee, Nehal Hasmukhari Gandhi. The appeal is filed under Section 260A of the Income Tax Act, 1961. The appeal was not pressed by the Revenue due to a low tax effect. This decision was made in accordance with Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular specifies that appeals before the High Court should not be filed if the monetary limit is Rs. 1,00,00,000 or less.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable given the low tax effect, as per the CBDT Circular No. 17/2019? (Question of law) The Revenue argued that the appeal was not pressed in view of the low tax effect, citing Circular No. 17/2019. The circular establishes monetary limits for appeals before various authorities, including the High Court, where the limit is Rs. 1,00,00,000. The Revenue's contention is that the tax effect in this case falls below this prescribed limit, rendering the appeal not pressable. No arguments were recorded for the assessee.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

C/TAXAP/639/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 639 of 2019 ============================================= THE PRIN. COMMISSIONER OF INCOME TAX-6 Versus NEHAL HASMUKHARI GANDHI ============================================= Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 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)

This tax appeal under Section 260A of the Income Tax Act, 1961 (for short ‘The Act, 1961’) is at the instance of the Revenue.

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.

According to the new policy as reflected from the C/TAXAP/639/2019 ORDER Circular referred to above, the table for monetary limits is as follows : Sr. No. Appeals/SLPs in Income-tax 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

In view of the aforesaid, this tax appeal is disposed of accordingly. (J. B. PARDIWALA, J) (A. C. RAO, J) Dolly

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