PR COMMISSIONER OF INCOME TAX, RAJKOT-1 vs. M/S ANKUR BUILDERS

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TAXAP/1086/2018HC GujaratGJHC24050466201827 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 appellant (Principal Commissioner of Income Tax) due to the low tax effect. This decision was made in consideration of CBDT Circular No. 17/2019, dated August 8, 2019, which revised the monetary limits for filing appeals. The circular sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal was disposed of in line with this policy. The court also reserved the liberty for the Revenue to revive the Tax Appeal in case of any difficulty. No specific findings on the merits of the original assessment or the grounds of appeal were made, as the appeal was not pressed.

What were the facts?

The Gujarat High Court was considering a Tax Appeal filed by the Principal Commissioner of Income Tax, Rajkot-1, against M/s. Ankur Builders. The appeal was notified 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 (CBDT). This circular provides revised monetary limits for filing appeals by the revenue. The appeal was not pressed by the appellant in view of this circular and the low tax effect.

What were the issues?

1. Whether the Tax Appeal is to be dismissed on the grounds of low tax effect, considering Circular No. 17/2019 issued by the CBDT? (Question of law and procedure) Assessee's Contention: The assessee did not present any arguments as the appeal was not pressed by the revenue. Revenue's Contention: The revenue, through its counsel, submitted that the Tax Appeal is 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, which is Rs. 1,00,00,000. The appeal was being disposed of in accordance with this policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/1086/2018                                                                                                 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO.  1086 of 2018 ========================================================== PR COMMISSIONER OF INCOME TAX, RAJKOT­1 Versus M/S ANKUR BUILDERS ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE UNSERVED(68) 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/1086/2018                                                                                                 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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