THE COMMISSIONER OF INCOME TAX, AHMEDABAD - II vs. LABH CONSTRUCTION & INDUSTRIESLTD.

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TAXAP/1198/2007HC GujaratGJHC24055555200720 September 2019Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE MS. JUSTICE SANGEETA K. VISHEN2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that in light of the Circular No. 23 of 2019, which stipulates that appeals with a tax effect not exceeding Rs. 1,00,00,000/- should not be filed before the High Court and which is retrospectively applicable to pending appeals, the learned senior standing counsel for the appellant (Revenue) did not press the present appeals. Consequently, the appeals were disposed of as not pressed. The Court also noted that if there was any error in the computation of the tax effect or if the circular was not applicable for any reason, the appellant would be at liberty to seek revival of the appeals. The specific issue or order under challenge and the merits of the case were not decided.

What were the facts?

These two appeals, R/TAX APPEAL NO. 1198 of 2007 and R/TAX APPEAL NO. 1199 of 2007, were filed by the Commissioner of Income Tax, Ahmedabad - II (the Revenue) against Labh Construction & Industries Ltd. (the Assessee). The appeals challenged an order or action that is not specified in the provided text. The procedural history is that the appeals were listed for hearing before the High Court of Gujarat. The learned senior standing counsel for the appellant stated that the tax effect involved in these appeals is less than Rs. 1,00,00,000/-.

What were the issues?

1. Whether the present appeals, with a tax effect less than Rs. 1,00,00,000/-, are maintainable before the High Court in light of Circular No. 23 of 2019. The Revenue's contention, as presented by the learned senior standing counsel, was that the tax effect in these appeals is below the monetary limit prescribed by Circular No. 23 of 2019, which provides that no appeal with a tax effect not exceeding Rs. 1,00,00,000/- shall be filed before the High Court. This circular has been made retrospectively applicable to pending appeals. Therefore, the Revenue did not press the present appeals. The Assessee's contentions are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/1198/2007 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1198 of 2007 With R/TAX APPEAL NO. 1199 of 2007 ========================================================== THE COMMISSIONER OF INCOME TAX, AHMEDABAD - II Versus LABH CONSTRUCTION & INDUSTRIESLTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR BS SOPARKAR FOR MRS SWATI SOPARKAR(870) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE MS. JUSTICE SANGEETA K. VISHEN

Date : 20/09/2019

ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard   Mrs.   Mauna   Bhatt,   learned   senior standing counsel for the appellant and Mr. B.S. Soparkar, learned advocate for the respondent. 2. Mrs.   Mauna   Bhatt,   learned   senior   standing counsel for the appellant, has stated that the tax effect involved in these appeals is less than Rs.1,00,00,000/­. Under the circumstances, in the light   of   the   Circular   No.23   of   2019   dated 06.09.2019   issued   by   the   Government   of   India, Ministry   of   Finance,   Department   of   Revenue, Central   Board   of   Direct   Taxes,   which   provides that no appeal wherein the tax effect does not Page 1 of 2

C/TAXAP/1198/2007 ORDER exceed   the   monetary   limit   of   Rs.1,00,00,000/­ shall be filed before the High Court and which has also been made retrospectively applicable to pending   appeals,   the   learned   senior   standing counsel   for   the   appellant   does   not   press   the present appeals. 3. The appeals are, accordingly, disposed of as not   pressed   in   light   of   the   Circular   dated 06.09.2019. However, in case there is any error in the computation of the tax effect involved or if,   for   any   reason,   the   Circular   is   not applicable, it would be open for the appellant to seek revival of the appeal/s. (HARSHA DEVANI, J) (SANGEETA K. VISHEN,J) PRAVIN KARUNAN Page 2 of 2

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