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

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TAXAP/2214/2010HC GujaratGJHC24046359201007 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court noted that the appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The circular establishes monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. Since the appeal was not pressed, the court disposed of the appeal accordingly. The court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the merits of the original assessment were not discussed or decided.

What were the facts?

The Commissioner of Income Tax Central-II (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Shambhubhai Mahadev Ahir (the assessee). The appeal was notified for passing an appropriate order due to a low tax effect. The appeal was to be disposed of 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 appeal was not pressed by the Revenue based on this circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law and procedure) The Revenue argued that the appeal was not pressed in view of the low tax effect, referencing Circular No. 17/2019. The circular provides monetary limits for appeals before various authorities, including the High Court. The Revenue relied on the policy reflected in this circular to justify not pressing the appeal. No arguments were recorded for the assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/2214/2010 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 2214 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 ========================================================== 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/2214/2010 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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