COMMISSIONER OF INCOME TAX - III vs. M/S JAY ENTERPRISE

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TAXAP/1325/2010HC GujaratGJHC24046179201009 September 2019Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the Tax Appeal is not pressed by the Revenue due to the low tax effect, in accordance with Circular No. 17/2019 dated August 8, 2019. The circular specifies monetary limits for appeals, and the appeal in question falls within the revised limits that do not warrant further prosecution. Consequently, the appeal is disposed of accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific issue decided by the ITAT, which led to this appeal, is not detailed in this order.

What were the facts?

The Commissioner of Income Tax - III (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against an order passed by the Income Tax Appellate Tribunal (ITAT) concerning M/s Jay Enterprise (the assessee). The appeal was notified for an appropriate order due to a 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, which revised monetary limits for filing appeals. The circular sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

What were the issues?

1. Whether the appeal should be dismissed due to a low tax effect, as per Circular No. 17/2019? (Question of law and fact) Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. The judgment does not record any specific arguments from the assessee. Revenue's Contention: The Revenue contended that the appeal should be disposed of in view of the low tax effect, citing Circular No. 17/2019. This circular establishes revised monetary limits for appeals, and the present appeal falls below the threshold for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/1325/2010 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1325 of 2010 ========================================================== COMMISSIONER OF INCOME TAX - III Versus M/S JAY ENTERPRISE ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MRS SWATI SOPARKAR(870) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO

Date : 09/09/2019

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/1325/2010 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) (A. C. RAO, J) aruna Page 2 of 2

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