A.C.I.T. vs. RELIABLE CONSTRUCTION CO.

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TAXAP/178/2001HC GujaratGJHC24024613200118 November 2014Bench: HONOURABLE MR. JUSTICE KS JHAVERI,HONOURABLE MR. JUSTICE K.J.THAKER2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the Tax Appeal filed by the revenue was not maintainable solely on the ground of low tax effect. The Court referred to the Board's Circular dated 27.03.2000, which prescribed a minimum tax effect of Rs. 4,00,000 for preferring appeals before the High Court under Section 260A and for references under Section 256(2) of the Income Tax Act. As the tax effect in the present case was admittedly less than the prescribed limit, the High Court dismissed the appeal without going into the merits of the matter. The operative direction was the dismissal of the appeal. No issue was expressly left undecided.

What were the facts?

The appellant-revenue filed a Tax Appeal before the High Court of Gujarat at Ahmedabad, challenging an order passed by the learned ITAT, Rajkot Bench, dated 29.11.2000, in ITA No. 4906/Ahd/1991 for the Assessment Year 1988-89. The appeal was filed by the Assistant Commissioner of Income Tax (ACIT) against the respondent, Reliable Construction Co. The High Court noted that the tax effect in the case was less than the prescribed limit for preferring an appeal before the High Court, as per the Board's Circular dated 27.03.2000.

What were the issues?

1. Whether the Tax Appeal filed by the revenue is maintainable before the High Court, considering the tax effect. The revenue contended that the appeal was maintainable. The assessee argued that the appeal was not maintainable due to low tax effect. The High Court referred to the Board's Circular dated 27.03.2000, which stipulated that appeals before the High Court under Section 260A and references under Section 256(2) of the Income Tax Act are to be preferred only when the tax effect exceeds Rs. 4,00,000. The revenue admitted that the tax effect in the present case was below this limit.

Which sections of the Income-tax Act were involved?

Section 260A,Section 256(2)

AI-generated summary — verify with the full judgment below

O/TAXAP/178/2001 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 178 of 2001

FOR APPROVAL AND SIGNATURE:

HONOURABLE MR.JUSTICE KS JHAVERI and HONOURABLE MR.JUSTICE K.J.THAKER ================================================================ 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, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ================================================================ A.C.I.T.....Appellant(s) Versus RELIABLE CONSTRUCTION CO.....Opponent(s) ================================================================ Appearance: MR PRANAV G DESAI, ADVOCATE for the Appellant(s) No. 1 MR SN SOPARKAR, ADVOCATE for the Opponent(s) No. 1 ================================================================ CORAM: HONOURABLE MR.JUSTICE KS JHAVERI and HONOURABLE MR.JUSTICE K.J.THAKER Date : 18/11/2014 ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) Page 1 of 2

O/TAXAP/178/2001 JUDGMENT 1. This is an appeal by the appellant- revenue, seeking to assail the order of the learned ITAT, Rajkot Bench, Dated : 29.11.2000, rendered in ITA No. 4906/Ahd/1991 for the A.Y. 1988-89. 2. Without touching the issue admitted, it needs to be stated at the outset that this Tax Appeal is not maintainable only on the ground of low tax effect. Board's Circular dated 27.03.2000,

supersession

other instructions, has set the limit for preferring appeal before the High Court under section 260A as also for reference under section 256(2) of the Act, only when the tax effect exceeds the sum of Rs.4.00 lacs and more. Admittedly, the tax effect in the case on hand is less than the prescribed limit, and therefore, without going into the merits of the matter, the present Tax Appeal is DISMISSED. No order as to costs. (K.S.JHAVERI, J.) (K.J.THAKER, J) UMESH Page 2 of 2

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