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

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TAXAP/112/2013HC GujaratGJHC24043263201327 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 appeal in accordance with the provisions of Circular No. 17/2019. The Court noted that the appeal was not pressed by the Revenue due to its low tax effect, aligning with the monetary limits stipulated in the circular. Specifically, the circular sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The Court disposed of the appeal accordingly. The judgment explicitly reserves the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue regarding the merits of the original assessment or the prior appellate orders was decided.

What were the facts?

This matter concerns Tax Appeal No. 112 of 2013 filed by the Commissioner of Income Tax II (the Revenue) against Labh Construction and Industries Ltd (the assessee). The appeal was listed for an appropriate order. The appeal was notified due to its low tax effect. The High Court of Gujarat at Ahmedabad was considering the appeal in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes, which outlines 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 entertained given its low tax effect in light of CBDT Circular No. 17/2019? The Revenue argued that the appeal was not pressed due to the low tax effect, referencing CBDT Circular No. 17/2019. The assessee's contentions are not recorded in the judgment. The circular establishes monetary limits for appeals before various authorities, including the High Court, where the limit is Rs. 1,00,00,000. The judgment focuses on the application of this circular to the present appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/112/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 112 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/112/2013 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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