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

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TAXAP/157/2013HC GujaratGJHC24043281201321 January 2019Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE DR. JUSTICE A. P. THAKER2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat, acknowledging the admitted tax effect of less than Rs. 50,00,000/-, disposed of the appeal as not pressed. The decision was made in direct reliance on Circular No. 3/2018 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular stipulates that appeals with a tax effect not exceeding Rs. 50,00,000/- should not be filed before the High Court and has retrospective applicability. The Court noted that if there was any error in the computation of the tax effect or if the circular was otherwise not applicable, the appellant would have the liberty to seek revival of the appeal. No specific finding was made on the merits of the original dispute.

What were the facts?

This case involves an appeal by the Commissioner of Income Tax (the Revenue) against Commercial Co.Op Bank Ltd (the Assessee). The appeal was filed before the High Court of Gujarat. The assessment year(s) are not explicitly stated in the provided text. The core of the matter is that the tax effect involved in the appeal was admitted by both parties to be less than Rs. 50,00,000/-. This fact became crucial in the subsequent proceedings before the High Court.

What were the issues?

1. Whether the appeal filed by the Revenue is maintainable before the High Court given the tax effect involved, in light of the CBDT Circular No. 3/2018. The Revenue, through its learned Senior Standing Counsel, did not press the appeal. This was based on the admitted fact that the tax effect was below the monetary limit stipulated in CBDT Circular No. 3/2018, which mandates that no appeal with a tax effect not exceeding Rs. 50,00,000/- should be filed before the High Court and is retrospectively applicable to pending appeals. The Assessee, represented by its learned advocate, did not present any arguments against this position.

AI-generated summary — verify with the full judgment below

C/TAXAP/157/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 157 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/157/2013 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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