COMMISSIONER OF INCOME TAX-IV vs. V K PATEL & CO

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TAXAP/117/2012HC GujaratGJHC24042762201227 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 is disposed of in view of the low tax effect, as per Circular No. 17/2019. The reasoning is based on the new policy reflected in the circular, which establishes monetary limits for appeals. For appeals before the High Court, the monetary limit is Rs. 1,00,00,000. Since the appeal was not pressed by the Revenue due to the low tax effect, it was disposed of accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The ratio decidendi is that appeals falling below the prescribed monetary limits in the CBDT circulars are to be withdrawn or not pressed, leading to their disposal by the appellate authorities.

What were the facts?

The Commissioner of Income Tax-IV (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against V K Patel & Co (the assessee). The appeal was notified for an appropriate order due to low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular revised the monetary limits for filing appeals. The table provided in the circular indicates that appeals before the High Court should have a monetary limit of Rs. 1,00,00,000. The High Court reserved liberty for the Revenue to revive the appeal in case of any difficulty.

What were the issues?

1. Whether the Tax Appeal filed by the Revenue is to be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not make any explicit arguments recorded in the judgment. The appeal was not pressed by the Revenue. Revenue's Contention: The Revenue submitted that the appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019 dated August 8, 2019. The circular sets revised monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. The Revenue relied on this circular to justify not pursuing the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/117/2012 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 117 of 2012 ========================================================== COMMISSIONER OF INCOME TAX-IV Versus V K PATEL & CO ========================================================== Appearance: MRS MAUNA M BHATT(174) 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 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 referred to above, the table for monetary limits is as follows: Page 1 of 2

C/TAXAP/117/2012 ORDER Sr. No. Appeals/SLPs in Incometax 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) (BHARGAV D. KARIA, J) aruna Page 2 of 2

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