THE COMMISSIONER OF INCOME TAXCENTRAL-I vs. M/S. RAJHANS BUILDERS

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TAXAP/2538/2010HC GujaratGJHC24046424201007 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 decided that the appeal should be disposed of in view of the low tax effect, as per Circular No. 17/2019. The reasoning was based on the updated policy reflected in the circular, which sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Since the appeal was not pressed by the Revenue due to this low tax effect, it was disposed of accordingly. The court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the appeal was disposed of based on the stated policy.

What were the facts?

The appeal, C/TAXAP/2538/2010, was filed by the Commissioner of Income Tax Central-I (the Revenue) against M/s. Rajhans Builders (the assessee). The appeal was listed for an appropriate order by the High Court of Gujarat at Ahmedabad. The primary reason for listing the appeal was its low tax effect. The court noted that the appeal was to be disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes.

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) The Revenue argued that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The circular provides monetary limits for filing appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. The judgment does not record any specific arguments from the assessee on this point.

AI-generated summary — verify with the full judgment below

C/TAXAP/2538/2010 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 2538 of 2010 ========================================================== THE COMMISSIONER OF INCOME TAXCENTRAL-I Versus M/S. RAJHANS BUILDERS ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) 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/2538/2010 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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