PR. COMMISSIONER OF INCOME TAX-4 vs. SANKET ESTATE AND FINANCE PVT LTD

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TAXAP/247/2016HC GujaratGJHC24051698201607 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 captioned appeal was notified for passing an appropriate order due to its low tax effect, in accordance with Circular No. 17/2019. The Court observed that the appeal was not pressed by the Revenue in view of this circular and the monetary limits prescribed therein for appeals before the High Court. Consequently, the appeal was disposed of accordingly. The Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original assessment or the order under challenge was made.

What were the facts?

The Principal Commissioner of Income Tax-4 (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against an order concerning Sanket Estate and Finance Pvt Ltd (Assessee). The appeal was notified for an appropriate order due to its low tax effect. The Court considered Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes, which outlines monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The appeal was subsequently not pressed by the Revenue in light of this circular.

What were the issues?

1. Whether the appeal should be entertained given the low tax effect in light of CBDT Circular No. 17/2019, concerning the monetary limits for filing appeals before the High Court (turning on the interpretation and application of the circular). Contentions: Assessee: No specific arguments recorded as the appeal was not pressed. Revenue: The appeal is not pressed due to the low tax effect, as per the guidelines in CBDT Circular No. 17/2019, which sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/247/2016 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 247 of 2016 ========================================================== PR. COMMISSIONER OF INCOME TAX-4 Versus SANKET ESTATE AND FINANCE PVT LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR VIJAY S RANJAN(6126) for the Opponent(s) No. 1 RULE SERVED(64) 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/247/2016 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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