COMMISSIONER OF INCOME TAX-III vs. MANJEET SINGH

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TAXAP/1305/2008HC GujaratGJHC24041301200814 September 2022Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR,HONOURABLE MR. JUSTICE ASHUTOSH SHASTRI2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court has disposed of the appeal on the grounds of low tax effect. The Court noted that the tax effect arising from the Assessing Officer's order is less than the monetary limit stipulated in the extant Circulars/Notifications issued by the Central Board of Direct Taxes (CBDT), specifically referencing Circular No. 17 of 2019 dated 08.08.2019. Consequently, the appeal would not ordinarily survive for consideration. The Court made it clear that the question of law raised in the appeal remains open. It also granted liberty to either party to seek revival of the appeal if it falls under any exception carved out in the said circulars, by filing an appropriate note in the Registry. No decision on the merits of the case has been rendered.

What were the facts?

This is an appeal by the Commissioner of Income Tax-III against an order of the Income Tax Appellate Tribunal (ITAT). The appeal concerns assessment year(s) not explicitly stated. The Assessing Officer had passed an order leading to a consequential demand. The present appeal before the High Court challenges the ITAT's order. The material fact highlighted is that the tax effect arising from the Assessing Officer's order is below the monetary limit prescribed by CBDT Circulars/Notifications. Specifically, Circular No. 17 of 2019 dated 08.08.2019 is mentioned as the basis for not pursuing appeals with low tax effect.

What were the issues?

1. Whether the appeal involves a substantial question of law as to the interpretation of the Constitution of India or any order made thereunder? (This is a standard question posed in the cause list, not an issue argued by the parties). The judgment does not record any specific arguments made by the assessee or the revenue regarding the merits of the case. The appeal is disposed of based on the tax effect and the CBDT circulars.

AI-generated summary — verify with the full judgment below

C/TAXAP/1305/2008 JUDGMENT DATED: 14/09/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1305 of 2008

FOR APPROVAL AND SIGNATURE:

HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR and HONOURABLE MR. JUSTICE ASHUTOSH J. SHASTRI ============================================= 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the Constitution of India or any order made thereunder ? ============================================= COMMISSIONER OF INCOME TAX-III Versus MANJEET SINGH ============================================= Appearance: MRS KALPANAK RAVAL(1046) for the Appellant(s) No. 1 MRS SWATI SOPARKAR(870) for the Opponent(s) No. 1 ============================================= CORAM:HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR and HONOURABLE MR. JUSTICE ASHUTOSH J. SHASTRI

Date : 14/09/2022

ORAL JUDGMENT (PER : HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR) 1. This appeal by the assessee is directed against the order of the Income Tax Appellate Tribunal. The order passed by the Page 1 of 2

C/TAXAP/1305/2008 JUDGMENT DATED: 14/09/2022 Assessing Officer and the consequential demand, notice issued thereunder would indicate that the tax effect is less than the monetary limit fixed under extant Circulars/Notifications issued by the Central Board of Direct Taxes (CBDT), by virtue of which the appeal would not survive for consideration in light of the low effect of tax prescribed under the said Notifications namely Circular No. 17 of 19 dated 08.08.2019. Hence, appeal stands disposed of as having low tax effect and keeping open the question of law raised in the appeal. However, it is made clear that in the event of this appeal falling under the category of any exception carved out under the said extant Circulars, either of the parties would be at liberty to seek for revival of this appeal by filing appropriate note in the Registry. (ARAVIND KUMAR,CJ) (ASHUTOSH J. SHASTRI, J) phalguni Page 2 of 2

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