COMMISSIONER OF INCOME TAX (EXEMPTIONS) vs. SUBHASH PETHALJIBHAI CHAVDA

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TAXAP/196/2018HC GujaratGJHC24016571201827 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 was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The circular establishes a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal was disposed of accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The principle derived is that appeals below the prescribed monetary threshold, as per the CBDT's policy, may be withdrawn or not pressed by the Revenue, leading to their disposal without a decision on merits.

What were the facts?

The Commissioner of Income Tax (Exemptions) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against an order concerning Subhash Pethaljibhai Chavda. The appeal was notified for an appropriate order due to low tax effect. The High Court referred to Circular No. 17/2019, dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The appeal was disposed of in light of this circular.

What were the issues?

1. Whether the Tax Appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not explicitly argue, but the appeal was not pressed by the Revenue due to low tax effect. The Revenue relied on Circular No. 17/2019, dated August 8, 2019, which sets monetary limits for appeals. The monetary limit for appeals before the High Court is Rs. 1,00,00,000. The appeal was considered to be below this threshold. Revenue's Contention: The Revenue did not press the appeal in view of the low tax effect, citing Circular No. 17/2019. The appeal was to be disposed of in accordance with the new policy reflected in the circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/196/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 196 of 2018 ========================================================== COMMISSIONER OF INCOME TAX (EXEMPTIONS) Versus SUBHASH PETHALJIBHAI CHAVDA ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) 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/196/2018 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) KUMAR ALOK Page 2 of 2

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