THE PR. COMMISSIONER OF INCOME TAX, RAJKOT 1 vs. NEW HOME DEVELOPERS (DREAM CITY)

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TAXAP/1071/2018HC GujaratGJHC24050736201827 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 of Gujarat at Ahmedabad decided to dispose of the Tax Appeal in accordance with Circular No. 17/2019 dated August 8, 2019, due to the low tax effect. The Court noted the policy reflected in the circular, which sets monetary limits for appeals. Specifically, for appeals before the High Court, the monetary limit is Rs. 1,00,00,000. Since the appeal was not pressed by the Revenue in view of this circular, 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 findings were made on the merits of the original dispute.

What were the facts?

The Principal Commissioner of Income Tax, Rajkot (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against an order concerning New Home Developers (Dream City) (Assessee). The appeal was listed for an appropriate order due to its low tax effect. The Court noted that 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. This circular outlines monetary limits for filing appeals. The appeal was not pressed by the Revenue.

What were the issues?

1. Whether the Tax Appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019 dated August 8, 2019? (Question of law) Assessee's Contentions: The Assessee did not explicitly present arguments as the appeal was not pressed by the Revenue. However, the underlying reason for not pressing the appeal, as stated by the Revenue, was the low tax effect in accordance with the CBDT Circular. Revenue's Contentions: The Revenue stated that the Tax Appeal was not pressed in view of the low tax effect, having regard to Circular No. 17/2019 dated August 8, 2019. The circular specifies monetary limits for appeals before various authorities, including the High Court (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/1071/2018                                                                                                 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO.  1071 of 2018 ========================================================== THE PR. COMMISSIONER OF INCOME TAX, RAJKOT 1 Versus NEW HOME DEVELOPERS (DREAM CITY) ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) 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/1071/2018                                                                                                 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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