COMMISSIONER OF INCOME TAX-II vs. KHIMJIBHAI TIDABHAI MAKWANA

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TAXAP/1654/2009HC GujaratGJHC24041029200909 September 2019Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal was not pressed by the Revenue in view of the low tax effect and in accordance with Circular No. 17/2019. The circular, dated August 8, 2019, sets out revised monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. Consequently, the appeal was disposed of. The Court also granted liberty to the Revenue to revive the tax appeal if any difficulty arose. No specific finding was made on the merits of the original dispute, as the appeal was decided on procedural grounds related to the tax effect and departmental policy.

What were the facts?

The appeal was filed by the Commissioner of Income Tax-II (Revenue) against Khimjibhai Tidabhai Makwana (Assessee). The appeal was notified for an appropriate order due to low tax effect. The High Court of Gujarat at Ahmedabad was considering the appeal. The judgment references Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The appeal was not pressed by the Revenue in light of this circular and the low tax effect. The court reserved liberty for the Revenue to revive the appeal in case of difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in light of Circular No. 17/2019? (Question of law) Assessee's Contentions: The assessee did not present any arguments as the appeal was not pressed by the Revenue. Revenue's Contentions: The Revenue argued that the appeal should be disposed of in view of the low tax effect, citing Circular No. 17/2019, dated August 8, 2019. This circular establishes revised monetary limits for appeals before various authorities, including the High Court, which was Rs. 1,00,00,000. The Revenue indicated that the appeal was not pressed based on this new policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/1654/2009 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1654 of 2009 ========================================================== COMMISSIONER OF INCOME TAX-II Versus KHIMJIBHAI TIDABHAI MAKWANA ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO

Date : 09/09/2019

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 8th 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 8th 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/1654/2009 ORDER Sr. No. Appeals/SLPs in Incometax 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) (A. C. RAO, J) aruna Page 2 of 2

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