COMMISSIONER OF INCOME TAX AHMEDABAD IV vs. SURYA ESTATE DEVELOPERS

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TAXAP/1028/2014HC GujaratGJHC24045161201407 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat held that the Tax Appeal is not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The Court noted the monetary limits prescribed by the circular for appeals before the High Court, which is Rs. 1,00,00,000. Consequently, the appeal was disposed of in accordance with this circular. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute, as the appeal was withdrawn by the appellant.

What were the facts?

The Commissioner of Income Tax, Ahmedabad IV (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Surya Estate Developers (the assessee). The appeal was notified for passing an appropriate order due to its low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019, dated 8th August, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019. The Revenue argued that the appeal is not pressed due to the low tax effect, referencing Circular No. 17/2019. The circular establishes monetary limits for appeals before various judicial forums, including the High Court, where the limit is Rs. 1,00,00,000. The Revenue's contention is that the tax effect in this appeal falls below this prescribed limit, making it non-maintainable under the new policy. The assessee did not record any arguments in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/1028/2014 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1028 of 2014 ========================================================== COMMISSIONER OF INCOME TAX AHMEDABAD IV Versus SURYA ESTATE DEVELOPERS ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR SN DIVATIA(1378) for the Opponent(s) No. 1 RULE SERVED(64) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 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:- Page 1 of 2

C/TAXAP/1028/2014 ORDER DATED: 07/01/2022 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 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. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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