PR COMMISSIONER OF INCOME TAX RAJKOT 1 vs. SHILESH GANGARAM RAMANI

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TAXAP/1020/2018HC GujaratGJHC24043531201827 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the Tax Appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. This circular establishes monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. Since the tax effect in this appeal was low, the Revenue chose not to pursue it. The Court disposed of the appeal accordingly. The Court also reserved the liberty for the Revenue to revive the Tax Appeal in case of any difficulty. No specific issue regarding the merits of the assessment was decided.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Rajkot (Revenue) against Shailesh Gangaram Ramani (Assessee). The appeal was listed for passing an appropriate order. The Registry notified the appeal due to its low tax effect. The appeal was to be disposed of in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. The circular outlines monetary limits for filing appeals before various authorities, including the High Court. The appeal was not pressed by the Revenue due to the low tax effect.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, in light of Circular No. 17/2019 issued by the CBDT? (Question of law) Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. However, the appeal's disposal was based on the Revenue's decision to not press it. Revenue's Contention: The Revenue did not press the appeal due to its low tax effect, referencing Circular No. 17/2019. This circular sets monetary limits for appeals, and the appeal in question fell below the threshold for High Court appeals (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/1020/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1020 of 2018 ========================================================== PR COMMISSIONER OF INCOME TAX RAJKOT 1 Versus SHILESH GANGARAM RAMANI ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 UMAIDSINGH BHATI(7973) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA

Date : 27/01/2020

ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 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 of Direct Taxes, New Delhi. 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 of Direct Taxes, New Delhi. Page 1 of 2

C/TAXAP/1020/2018 ORDER According to the new policy, as reflected from the Circular referred to above, the table for monetary limits is as follows : Sr. No. Appeals/SLPs in Income-tax matters Monetary Limits (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, 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.) (BHARGAV D. KARIA, J.) /MOINUDDIN Page 2 of 2

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