COMMISSIONER OF INCOME TAX -II vs. HARISHBHAI RAOJIBHAI PATEL HUF

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TAXAP/241/2013HC GujaratGJHC24043317201321 January 2019Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE DR. JUSTICE A. P. THAKER2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal is disposed of as not pressed. This decision was made in light of Circular No. 3/2018 dated 11th July, 2018, which mandates that appeals with a tax effect not exceeding Rs. 50,00,000/- should not be filed before the High Court. The Court noted that it is an admitted position between the parties that the tax effect in this appeal is below this monetary limit. Consequently, the learned senior standing counsel for the appellant did not press the appeal. The operative direction is that the appeal is disposed of as not pressed. However, the Court granted liberty to the appellant to seek revival of the appeal if there is any error in the computation of the tax effect or if the circular is not applicable for any reason.

What were the facts?

This is an appeal filed by the Commissioner of Income Tax - II (the appellant/revenue) against an order concerning Harishbhai Raojibhai Patel HUF (the respondent/assessee). The appeal was filed before the High Court of Gujarat at Ahmedabad. The core of the matter revolves around the tax effect involved in the appeal. It is an admitted position between the parties that the tax effect in this appeal is less than Rs. 50,00,000/-. This fact is crucial in determining the further course of action for the appeal.

What were the issues?

1. Whether the appeal is maintainable before the High Court given the tax effect involved? The appellant (revenue) argued that the appeal should be dismissed as not pressed. This contention is based on Circular No. 3/2018 dated 11th July, 2018, issued by the Central Board of Direct Taxes. This circular stipulates that no appeal where the tax effect does not exceed Rs. 50,00,000/- shall be filed before the High Court and is applicable retrospectively to pending appeals. The respondent (assessee) did not record any specific argument in the judgment, but their counsel was present and heard.

AI-generated summary — verify with the full judgment below

C/TAXAP/241/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 241 of 2013 ========================================================== COMMISSIONER OF INCOME TAX -II Versus HARISHBHAI RAOJIBHAI PATEL HUF ========================================================== Appearance: MR.VARUN K.PATEL(3802) for the APPELLANT (s) No. 1 MR MANISH J SHAH(1320) for the RESPONDENT(s) No. 1 RULE SERVED(64) for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE DR.JUSTICE A. P. THAKER

Date : 21/01/2019

ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mr.Varun K. Patel, learned Senior Standing Counsel for the appellant and Mr.Manish Shah, learned advocate for the respondent. 2. It is an admitted position between the parties that the tax effect involved in this appeal is less than Rs.50,00,000/-. Under the circumstances, in the light of the Circular No.3/2018 dated 11th July, 2018 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes which provides that no appeal wherein the tax effect does not exceed the monetary limit of Rs.50,00,000/- shall be filed before the High Court and has also been made retrospectively applicable to pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. Page 1 of 2

C/TAXAP/241/2013 ORDER 3. The appeal is accordingly disposed of as not pressed in the light of the Circular dated 11th July, 2018. However, in case there is any error in the computation of the tax effect involved or if for any reason, the circular is not applicable, it would be open for the appellant to seek revival of the appeal. (HARSHA DEVANI, J) (A. P. THAKER, J) V.R. PANCHAL Page 2 of 2

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