COMMISSIONER OF INCOME TAX CENTRAL-II vs. SHAMBHUBHAI MAHADEV AHIR

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TAXAP/2213/2010HC GujaratGJHC24046358201007 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the appeal should be disposed of in view of the low tax effect, as per Circular No. 17/2019 dated 8th August, 2019. The reasoning was based on the policy outlined in the circular, which sets monetary limits for appeals. The court noted the table provided in the circular, which specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The operative direction was to dispose of the appeal accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the appeal was disposed of based on the stated policy.

What were the facts?

The appeal, C/TAXAP/2213/2010, was filed by the Commissioner of Income Tax Central-II (the Revenue) against Shambhubhai Mahadev Ahir (the assessee). The appeal was listed for an appropriate order. The High Court of Gujarat at Ahmedabad noted that the appeal was being disposed of due to its low tax effect, in accordance with Circular No. 17/2019 dated 8th August, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The court referenced a table within the circular indicating monetary limits for appeals before the Appellate Tribunal, High Court, and Supreme Court.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? (Question of law) The Revenue argued that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The judgment does not record any arguments from the assessee on this point. The court's decision hinges on the application of the aforementioned circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/2213/2010 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 2213 of 2010 ========================================================== COMMISSIONER OF INCOME TAX CENTRAL-II Versus SHAMBHUBHAI MAHADEV AHIR ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MRS SWATI SOPARKAR(870) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

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 8 th 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 8 th 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/2213/2010 ORDER DATED: 07/01/2022 Sr. No. Appeals/SLPs in Income-tax 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) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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