COMMISSIONER OF INCOME TAX-IV, vs. BHAVNA ENGINEERING CO. BHAVNA HOUSE,

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TAXAP/1997/2008HC GujaratGJHC24041430200814 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 would not survive for consideration due to the low tax effect, as prescribed by CBDT Circular No. 17 of 19 dated 08.08.2019. The appeal is disposed of on this ground. However, the court explicitly stated that the question of law raised in the appeal remains open. The parties are granted liberty to seek revival of the appeal by filing an appropriate note in the Registry if it falls under any exceptions carved out in the aforementioned circular. The court did not decide the substantive question of law.

What were the facts?

The appeal is filed by the Commissioner of Income Tax-IV against an order of the Income Tax Appellate Tribunal (ITAT). The assessee is Bhavna Engineering Co. The appeal challenges the order of the Assessing Officer and a consequential demand. The judgment notes that the tax effect in this case is below the monetary limit prescribed by CBDT Circular No. 17 of 19 dated 08.08.2019. Consequently, the appeal would not ordinarily survive for consideration. The High Court has made it clear that the question of law raised in the appeal is kept open and parties can seek revival if the appeal falls under any exception to the circular.

What were the issues?

1. Whether the appeal involves a substantial question of law as to the interpretation of the Constitution of India or any order made thereunder? (This is framed as a question for the court's consideration in the cause list, not a specific issue argued by the parties). The judgment does not record specific arguments made by the assessee or the revenue regarding the substantive issues of the appeal. The sole basis for disposal is the low tax effect as per CBDT Circular No. 17 of 19.

AI-generated summary — verify with the full judgment below

C/TAXAP/1997/2008 JUDGMENT DATED: 14/09/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1997 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 ? ============================================= COMMISSIONER OF INCOME TAX-IV, Versus BHAVNA ENGINEERING CO. BHAVNA HOUSE, ============================================= Appearance: MR NITIN K MEHTA(3286) for the Appellant(s) No. 1 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/1997/2008 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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