COMMISSIONER OF INCOME TAX-V vs. BAKULESH B MEHTA, HUF

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TAXAP/1427/2010HC GujaratGJHC24046203201007 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat at Ahmedabad decided to dispose of the Tax Appeal in view of the low tax effect, as per Circular No. 17/2019. The court noted that the appeal was not pressed by the Revenue. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Since the tax effect of the present appeal was low, it was disposed of in accordance with this policy. The court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original assessment or the grounds of appeal.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax-V against Bakulesh B Mehta, HUF. The appeal was listed for passing an appropriate order by the High Court of Gujarat at Ahmedabad. The appeal was notified due to its low tax effect. The court considered Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular provides a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

What were the issues?

1. Whether the Tax Appeal filed by the Revenue is to be dismissed on the grounds of low tax effect, in light of Circular No. 17/2019 issued by the CBDT? Assessee's Contention: The assessee did not explicitly argue, but the appeal was not pressed by the Revenue due to the low tax effect, implying acceptance of the circular's applicability. Revenue's Contention: The Revenue, through its counsel, stated that the appeal is not pressed in view of the low tax effect and the policy reflected in Circular No. 17/2019. The circular establishes monetary limits for appeals, and the present appeal falls below the threshold for High Court appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/1427/2010 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1427 of 2010 ========================================================== COMMISSIONER OF INCOME TAX-V Versus BAKULESH B MEHTA, HUF ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) 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 MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

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 8 th 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 8 th 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/1427/2010 ORDER DATED: 07/01/2022 Sr. No. Appeals/SLPs in Income-tax 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) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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