COMMISSIONER OF INCOME TAX vs. SWETA R DESAI

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TAXAP/1619/2008HC GujaratGJHC24041346200814 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 held that the appeals would not survive for consideration due to the low tax effect, as defined by the monetary limits in the extant CBDT Circulars/Notifications, specifically Circular No. 17 of 2019. Consequently, the appeals were disposed of on the ground of low tax effect. The Court explicitly stated that the questions of law raised in the appeals were kept open. It was further clarified that if the appeals fall under any exceptions provided in the circulars, either party could seek revival of the appeals by filing an appropriate note with the Registry. No decision was made on the substantial questions of law.

What were the facts?

The appeals were filed by the Commissioner of Income Tax (Revenue) against the assessee, Rekha R. Desai. The appeals challenged orders passed by the Assessing Officer and consequential demands. The judgment indicates that the tax effect in these appeals was below the monetary limit prescribed by extant Circulars/Notifications issued by the Central Board of Direct Taxes (CBDT). Specifically, Circular No. 17 of 2019, dated 08.08.2019, was referenced. The appeals were presented before the High Court of Gujarat at Ahmedabad.

What were the issues?

1. Whether the appeals, due to their low tax effect, should be dismissed in light of CBDT Circular No. 17 of 2019. This is a question of law concerning the applicability of administrative instructions to pending appeals. Assessee's Contention: The judgment does not record any specific contentions from the assessee regarding the merits of the case. The focus appears to be on the procedural aspect of the tax effect. Revenue's Contention: The Revenue's appeal is implicitly based on the assessment orders and demands. However, the judgment does not detail specific arguments made by the Revenue on the merits of the case. The Revenue's position, as reflected in the outcome, is that the appeals should be disposed of due to the low tax effect, aligning with the CBDT circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/1617/2008 JUDGMENT DATED: 14/09/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1617 of 2008 With R/TAX APPEAL NO. 1619 of 2008 With R/TAX APPEAL NO. 1620 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 Versus REKHA R DESAI ============================================= Appearance: MRS KALPANAK RAVAL(1046) for the Appellant(s) No. 1 MR BANDISH SOPARKAR for 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. These appeals by the assessee is directed against the Page 1 of 2

C/TAXAP/1617/2008 JUDGMENT DATED: 14/09/2022 order of the Income Tax Appellate Tribunal. The order passed by the 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 appeals 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, appeals stand 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 these appeals by filing appropriate note in the Registry. (ARAVIND KUMAR,CJ) (ASHUTOSH J. SHASTRI, J) phalguni Page 2 of 2

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