COMMISSIONER OF INCOME TAX (EXEMPTIONS) vs. LIONS CLUB OF SILVASSA CHARITABLE TRUST

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TAXAP/1215/2018HC GujaratGJHC24060889201827 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 Appeals were not pressed by the revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The circular establishes monetary limits for appeals, with a limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeals were disposed of based on this policy. The court reserved liberty for the revenue to revive the appeals in case of any difficulty. No specific findings were made on the merits of the original dispute, as the appeals were decided on procedural grounds related to the tax effect policy.

What were the facts?

The Commissioner of Income Tax (Exemptions) filed two Tax Appeals, R/TAX APPEAL NO. 1215 of 2018 and R/TAX APPEAL NO. 1216 of 2018, against the respondent, Lions Club of Silvassa Charitable Trust. The appeals were listed for an order due to a low tax effect. The appeals were being considered in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The judgment does not specify the assessment years or the specific amounts in dispute, nor does it detail the procedural history prior to the High Court's consideration.

What were the issues?

1. Whether the Tax Appeals should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019. Assessee's Contention: The assessee (Lions Club of Silvassa Charitable Trust) did not make any specific arguments recorded in the judgment. Revenue's Contention: The revenue (Commissioner of Income Tax (Exemptions)) argued that the appeals should be disposed of in view of the low tax effect, referencing Circular No. 17/2019, dated August 8, 2019. The revenue also relied on the monetary limits stipulated in the said circular for appeals before the High Court, which is Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/1215/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1215 of 2018 With R/TAX APPEAL NO. 1216 of 2018 ========================================================== COMMISSIONER OF INCOME TAX (EXEMPTIONS) Versus LIONS CLUB OF SILVASSA CHARITABLE TRUST ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR. HARDIK V VORA(7123) 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) The Registry has notified the Appeals for the purpose of passing an appropriate order. The captioned Appeals have been notified because of the low tax effect. The Appeals are 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 of Direct Taxes, New Delhi. These Tax Appeals are 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 of Direct Taxes, New Delhi. Page 1 of 2

C/TAXAP/1215/2018 ORDER According to the new policy, as reflected from the Circular referred to above, the table for monetary limits is as follows : Sr. No. Appeals/SLPs in Income-tax matters Monetary Limits (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 Appeals are disposed of accordingly. In case of any difficulty, we reserve the liberty for the Revenue to revive the Tax Appeals. (J. B. PARDIWALA, J.) (BHARGAV D. KARIA, J.) /MOINUDDIN Page 2 of 2

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