THE COMMISSIONER OF INCOME TAX - I vs. THACKER SATISHKUMAR

TAXAP/1540/2007HC GujaratGJHC24041400200717 December 2014Author: HONOURABLE MR. JUSTICE KS JHAVERI,HONOURABLE MR. JUSTICE K.J.THAKER3 pages
AI SummaryDismissed

Facts

The appellant-revenue has challenged an order dated 16.05.2007 passed by the Income-tax Appellate Tribunal (ITAT), Rajkot Bench, in ITA No. 201/Rjt/2006 for the assessment year 2003-04. The High Court admitted the appeal and framed a substantial question of law. The revenue effect in the case was stated to be less than Rs. 1 lakh. The High Court noted that as per CBDT Instructions No. 1979 dated 27th March, 2000 and 02 of 2005, the revenue ought not to have filed an appeal where the total revenue effect is less than Rs. 1 lakh. Consequently, the appeal was not entertained.

Held

The High Court held that the appeal filed by the revenue was not entertained because the amount involved was small, with a revenue effect less than Rs. 1 lakh. The Court referred to CBDT Instruction No. 1979 dated 27th March, 2000 and 02 of 2005, which stipulate that appeals should not be filed where the total revenue effect is less than Rs. 1 lakh. Therefore, the substantial question of law was answered in favour of the assessee and against the revenue. The appeal was dismissed on the ground of the smallness of the amount. The Court granted liberty to the revenue to revive the appeal in case of difficulty. No decision was made on the merits of the case.

Key Issues

1. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in dismissing the appeal on the basis of the monetary limit for filing an appeal fixed by the Department without going into the merits of the case? Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The High Court's reasoning implies that the ITAT's decision to dismiss the appeal based on monetary limits was correct, and the revenue should not have appealed. Revenue's Contention: The revenue appealed against the ITAT's order. The High Court's decision indicates that the revenue's appeal was dismissed not on merits but due to the monetary limit prescribed by CBDT instructions, suggesting the revenue pursued the appeal despite the low revenue effect.

AI-generated summary — verify with the full judgment below

O/TAXAP/1540/2007 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 1540 of 2007

FOR APPROVAL AND SIGNATURE:

HONOURABLE MR.JUSTICE KS JHAVERI and HONOURABLE MR.JUSTICE K.J.THAKER ============================================================ ==== 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the Constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ================================================================ THE COMMISSIONER OF INCOME TAX - I....Appellant(s) Versus THACKER SATISHKUMAR....Opponent(s) ================================================================ Appearance: MR PRANAV G DESAI, ADVOCATE for the Appellant(s) No. 1 RULE SERVED for the Opponent(s) No. 1 ================================================================ CORAM: HONOURABLE MR.JUSTICE KS JHAVERI and HO

The order continues below.

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