COMMISSIONER OF INCOME TAX vs. COMMERCIAL CO.OP BANK LTD

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TAXAP/156/2013HC GujaratGJHC24043280201321 January 2019Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE DR. JUSTICE A. P. THAKER2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal held that the appeal should be disposed of as not pressed. This decision was based on the admitted fact that the tax effect was less than Rs. 50,00,000/- and in light of Circular No. 3/2018 issued by the CBDT. This circular mandates that no appeal with a tax effect not exceeding Rs. 50,00,000/- shall be filed before the High Court and has been made retrospectively applicable to pending appeals. The Revenue's counsel did not press the appeal under these circumstances. The Tribunal granted liberty to the appellant to seek revival of the appeal if there was any error in the computation of the tax effect or if the circular was not applicable for any reason. No other issues were decided on merits.

What were the facts?

This is a Tax Appeal filed by the Commissioner of Income Tax (Revenue) against Commercial Co.Op Bank Ltd (Assessee). The appeal is before the High Court of Gujarat at Ahmedabad. The material fact admitted by both parties is that the tax effect involved in this appeal is less than Rs. 50,00,000/-. The appeal was filed challenging an order or action, the details of which are not specified in the provided text. The procedural history is that the appeal was filed and is now being heard.

What were the issues?

The Tribunal had to decide whether to proceed with the appeal given the tax effect. The Revenue's contention, as presented by its counsel, was that the appeal should not be pressed due to the low tax effect, citing Circular No. 3/2018 dated 11th July, 2018. The Assessee's arguments are not recorded in the judgment. The core issue revolves around the applicability and implications of the CBDT's circular on pending appeals with a tax effect below a certain monetary limit.

AI-generated summary — verify with the full judgment below

C/TAXAP/156/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 156 of 2013 ========================================================== COMMISSIONER OF INCOME TAX Versus COMMERCIAL CO.OP BANK LTD ========================================================== Appearance: MR.VARUN K.PATEL(3802) for the APPELLANT(s) No. 1 MR TUSHAR P HEMANI(2790) for the RESPONDENT(s) No. 1 MS VAIBHAVI K PARIKH(3238) for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE DR.JUSTICE A. P. THAKER

Date : 21/01/2019

ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mr.Varun K. Patel, learned Senior Standing Counsel for the appellant and Mr. Tushar Hemani, learned advocate for the respondent. 2. It is an admitted position between the parties that the tax effect involved in this appeal is less than Rs.50,00,000/-. Under the circumstances, in the light of the Circular No.3/2018 dated 11th July, 2018 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 exceed the monetary limit of Rs.50,00,000/- shall be filed before the High Court and has also been made retrospectively applicable to pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. Page 1 of 2

C/TAXAP/156/2013 ORDER 3. The appeal is accordingly disposed of as not pressed in the light of the Circular dated 11th July, 2018. 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. (HARSHA DEVANI, J) (A. P. THAKER, J) V.R. PANCHAL Page 2 of 2

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