PRINCIPAL COMMISSIONER OF INCOME TAX-1 vs. MADHU KHURANA

PDF · subscribers

TAXAP/224/2018HC GujaratGJHC24011211201827 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 is disposed of in view of the low tax effect and the policy outlined in Circular No. 17/2019. The Revenue had explicitly stated that the appeal was not pressed on this ground. The court accepted this position and disposed of the appeal accordingly. The court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute, as the appeal was not pressed. The ratio decidendi is that appeals below the prescribed monetary limits, as per CBDT circulars, are to be withdrawn or not pressed, leading to their disposal without adjudication on merits.

What were the facts?

The Principal Commissioner of Income Tax-1 (Revenue) filed a tax appeal before the High Court of Gujarat at Ahmedabad against an order concerning Madhu Khurana (Assessee). The appeal, bearing number C/TAXAP/224/2018, was notified for an appropriate order due to its low tax effect. The Revenue chose not to press the appeal, citing Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals. The court noted the table of monetary limits for appeals before the Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000).

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? The Revenue argued that the appeal was not pressed in view of the low tax effect and the policy outlined in Circular No. 17/2019, which sets monetary limits for appeals. The Assessee did not present any arguments as recorded in the judgment. The issue revolves around the applicability of the revised monetary limits for filing appeals by the Revenue.

AI-generated summary — verify with the full judgment below

C/TAXAP/224/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 224 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-1 Versus MADHU KHURANA ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) 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/224/2018 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

Recent GST High Court judgments

Search GST case law →