DY CIT - KHEDA CIRCLE NADIAD vs. TORRENT CABLES LTD

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TAXAP/1656/2008HC GujaratGJHC24041359200814 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 appeal stands disposed of as having a low tax effect, in accordance with CBDT Circular No. 17 of 2019. The court explicitly stated that the appeal would not survive for consideration on its merits due to the low tax effect. However, the question of law raised in the appeal was kept open. The court also clarified that either party would be at liberty to seek revival of the appeal by filing an appropriate note in the Registry if the appeal falls under any exception carved out in the said circulars. No specific finding was made on the substantive tax issues.

What were the facts?

This appeal was filed by the assessee, DY CIT - Kheda Circle Nadiad, against an order of the Income Tax Appellate Tribunal. The appeal concerns an order passed by the Assessing Officer and a consequential demand. The judgment notes that the tax effect arising from the order is below the monetary limit prescribed by extant Circulars/Notifications issued by the Central Board of Direct Taxes (CBDT), specifically mentioning Circular No. 17 of 2019 dated 08.08.2019. Consequently, the appeal was not to be considered on its merits due to the low tax effect.

What were the issues?

The primary issue before the High Court was whether the appeal filed by the assessee should be dismissed on the grounds of low tax effect, as stipulated by CBDT Circular No. 17 of 2019. The assessee contended that the appeal should be disposed of as having a low tax effect, rendering it not maintainable for consideration on merits. The revenue's stance on this specific procedural point is not explicitly recorded in the provided text, other than their role as the appellant in this tax appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/1656/2008 JUDGMENT DATED: 14/09/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1656 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 ? ============================================= DY CIT - KHEDA CIRCLE NADIAD Versus TORRENT CABLES LTD ============================================= Appearance: MR.VARUN K.PATEL(3802) 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. This appeal by the assessee is directed against the order of the Income Tax Appellate Tribunal. The order passed by the Page 1 of 2

C/TAXAP/1656/2008 JUDGMENT DATED: 14/09/2022 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 appeal 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, appeal stands 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 this appeal by filing appropriate note in the Registry. (ARAVIND KUMAR,CJ) (ASHUTOSH J. SHASTRI, J) phalguni Page 2 of 2

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