COMMISSIONER OF INCOME-TAX, AHMEDABAD-3, vs. NAVRATNA ORGANISERS AND DEVELOPERS PVT. LTD.

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TAXAP/166/2017HC GujaratGJHC24056823201727 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the Tax Appeal is not pressed by the Revenue in view of the low tax effect, citing Circular No. 17/2019 dated 8th August, 2019. The Court noted the monetary limits prescribed by the Circular for appeals before the Income Tax Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). Consequently, the appeal was disposed of accordingly. The Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific issue decided was the maintainability and continuation of the appeal based on the updated policy on monetary limits for appeals.

What were the facts?

The Commissioner of Income-tax, Ahmedabad-3 (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Navratna Organisers and Developers Pvt. Ltd. (the assessee). The appeal was notified for an appropriate order due to low tax effect. The appeal was filed against an order or action that is not specified in the judgment. The procedural history indicates that the appeal was listed for disposal in light of a Circular issued by the Central Board of Direct Taxes regarding monetary limits for filing appeals.

What were the issues?

1. Whether the Tax Appeal is maintainable before the High Court given the low tax effect, in light of Circular No. 17/2019 dated 8th August, 2019? (Question of law) Assessee's Contention: The assessee did not make any arguments as the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue submitted that the appeal is not pressed in view of the low tax effect, as per Circular No. 17/2019. The Circular specifies monetary limits for appeals before different authorities, with a limit of Rs. 1,00,00,000 for appeals before the High Court. The Revenue relied on this Circular to justify not pressing the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/166/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 166 of 2017 ========================================================== COMMISSIONER OF INCOME-TAX, AHMEDABAD-3, Versus NAVRATNA ORGANISERS AND DEVELOPERS PVT. LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 VASIM MANSURI(8824) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA

Date : 27/01/2020

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/166/2017 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) (BHARGAV D. KARIA, J) GIRISH Page 2 of 2

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