COMMISSIONER OF INCOME TAX vs. SANAT R DESAI

PDF · subscribers
TAXAP/1620/2008HC GujaratGJHC24041347200814 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 filed by the Revenue would not survive for consideration on merits due to the low tax effect, which was below the monetary limit stipulated in CBDT Circular No. 17 of 2019. The Court disposed of the appeals on this ground, keeping open the questions of law raised. It was 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. The Court did not decide the substantial questions of law raised in the appeals.

What were the facts?

These are appeals by the assessee, Commissioner of Income Tax, against an order of the Income Tax Appellate Tribunal (ITAT). The appeals relate to assessment years not specified in the judgment. The Assessing Officer had passed an order leading to a consequential demand. However, the tax effect arising from these orders was found to be less than the monetary limit prescribed by Circular No. 17 of 2019, dated 08.08.2019, issued by the Central Board of Direct Taxes (CBDT). Consequently, the appeals were not considered maintainable for adjudication on merits due to the low tax effect.

What were the issues?

1. Whether the appeals filed by the Revenue are maintainable before the High Court given that the tax effect is below the monetary limit prescribed by CBDT Circular No. 17 of 2019. Contentions: Assessee (Revenue): The Revenue contended that the appeals should be disposed of as having a low tax effect, as per the CBDT Circular No. 17 of 2019, which sets a monetary threshold for filing appeals. The Revenue did not argue on the merits of the case. Opponent (Assessee): The judgment does not record specific arguments from the opponent (Rekha R. Desai). However, the context implies the opponent would likely rely on the ITAT's order and the CBDT circular to argue for dismissal of the Revenue's appeals.

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

Recent GST High Court judgments

Search GST case law →