COMMISSIONER OF INCOME TAX AHMEDABAD IV vs. NAVPADH ASSOCIATES

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TAXAP/1114/2014HC GujaratGJHC24045203201407 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 held that the appeal is not pressed by the Revenue due to the low tax effect, in accordance with Circular No. 17/2019. The Court noted the monetary limit for appeals before the High Court is Rs. 1,00,00,000. Consequently, the appeal was disposed of on this basis. The Court reserved the liberty for the Revenue to revive the tax appeal if any difficulty arises. No decision on the merits of the case was made.

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Ahmedabad IV, against Navpadh Associates. The appeal was notified for passing an appropriate order due to low tax effect. The appeal was not pressed by the appellant (Revenue) in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular sets monetary limits for filing appeals before various authorities. The High Court noted the monetary limit for appeals before it is Rs. 1,00,00,000. The appeal was disposed of accordingly, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? (Question of law and fact, concerning the applicability of CBDT Circulars). Assessee's Contention: The judgment records no specific contention from the assessee. However, the appeal was not pressed by the Revenue, implying the assessee would likely benefit from this. The appeal is being disposed of based on the Revenue's stance. Revenue's Contention: The Revenue submitted that the appeal is not pressed in view of the low tax effect, referencing Circular No. 17/2019. This circular provides monetary limits for filing appeals, and the present appeal falls below the threshold for High Court appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/1114/2014 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1114 of 2014 ========================================================== COMMISSIONER OF INCOME TAX AHMEDABAD IV Versus NAVPADH ASSOCIATES ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) 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/1114/2014 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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