COMMISSIONER OF INCOME TAX II vs. LABH CONSTRUCTION AND INDUSTRIES LTD

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TAXAP/111/2013HC GujaratGJHC24043262201327 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 decided to dispose of the tax appeal in view of the low tax effect, as per Circular No. 17/2019. 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 current appeal falls under this category and is not pressed by the Revenue due to its low tax effect, the court disposed of the appeal accordingly. The court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the appeal was disposed of based on the stated policy.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax II against Labh Construction and Industries Ltd. The appeal was listed before the High Court of Gujarat for passing an appropriate order. The appeal was notified due to its low tax effect. The court considered Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular specifies that appeals before the High Court should have a monetary limit of Rs. 1,00,00,000.

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? (Question of law) Assessee's Contention: The assessee did not make any specific arguments as the appeal was not pressed. The judgment does not record any arguments from the assessee. Revenue's Contention: The Revenue, through its counsel, submitted that the appeal is not pressed due to the low tax effect, referencing Circular No. 17/2019, dated August 8, 2019. The circular establishes monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/111/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 111 of 2013 ========================================================== COMMISSIONER OF INCOME TAX II Versus LABH CONSTRUCTION AND INDUSTRIES LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE SERVED(64) 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) 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 8th 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 8th 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 Page 1 of 2

C/TAXAP/111/2013 ORDER referred to above, the table for monetary limits is as follows: 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

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) Vahid Page 2 of 2

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