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

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TAXAP/2216/2010HC GujaratGJHC24046361201007 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 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 8th August, 2019. The circular establishes monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. The court noted that the appeal was being disposed of in accordance with this policy. The reasoning was solely based on the Revenue's decision not to press the appeal due to the low tax effect and the guidance provided by the CBDT circular. The ratio decidendi is that appeals with a low tax effect, below the prescribed monetary limits in CBDT circulars, may not be pursued. The operative direction was to dispose of the appeal accordingly, with liberty reserved for the Revenue to revive it in case of any difficulty.

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, challenging an order related to assessment year(s) not specified. The appeal was listed for passing an appropriate order due to low tax effect. The Revenue, represented by Mr. Manish R. Bhatt, Senior Advocate, informed the court that the appeal was not pressed. This decision was made in light of Circular No. 17/2019 dated 8th August, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The appeal was disposed of based on this circular, with liberty reserved for the Revenue to revive it if any difficulty arose.

What were the issues?

1. Whether the Tax Appeal filed by the Revenue is to be dismissed on the grounds of low tax effect, as per Circular No. 17/2019 dated 8th August, 2019? (Question of law) Contentions: Assessee: No specific contentions recorded for the assessee as the appeal was not pressed by the Revenue. Revenue: The Revenue argued that the appeal should be disposed of in view of the low tax effect, citing Circular No. 17/2019. This circular provides monetary limits for appeals before various authorities, including the High Court, which was Rs. 1,00,00,000. The Revenue indicated that the appeal was not pressed due to this circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/2216/2010 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 2216 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/2216/2010 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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