PR. COMMISSIONER OF INCOME TAX, RAJKOT 1 vs. KIRITKUMAR LAXMANBHAI PATEL

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TAXAP/258/2019HC GujaratGJHC24036392201927 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 of Gujarat at Ahmedabad decided to dispose of the Tax Appeal. The decision was based on the Revenue's submission that the appeal was not pressed due to a low tax effect, in line with Circular No. 17/2019. This circular establishes monetary limits for appeals, with a limit of Rs. 1,00,00,000 for appeals before the High Court. The Court acknowledged the new policy and disposed of the appeal accordingly. Liberty was granted to the Revenue to revive the tax appeal if any difficulty arose. No specific findings on the merits of the original assessment or the order under challenge were made, as the appeal was not pressed.

What were the facts?

The Principal Commissioner of Income Tax, Rajkot (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad. The appeal was against an order or action concerning Kiritkumar Laxmanbhai Patel (the assessee). The appeal was notified for an appropriate order due to low tax effect, in accordance with Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The appeal was disposed of based on this circular, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the Tax Appeal should be dismissed on the grounds of low tax effect as per Circular No. 17/2019? (Question of law) Assessee's contentions: The assessee did not file any specific contentions as the appeal was not pressed by the Revenue. However, the appeal's disposal was based on the Revenue's decision to withdraw it due to low tax effect. Revenue's contentions: The Revenue argued that the appeal should be disposed of in view of the low tax effect, citing Circular No. 17/2019 dated August 8, 2019. This circular sets monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. The appeal was not pressed on merits due to this policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/258/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 258 of 2019 ========================================================== PR. COMMISSIONER OF INCOME TAX, RAJKOT 1 Versus KIRITKUMAR LAXMANBHAI PATEL ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 UMAIDSINGH BHATI(7973) 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/258/2019 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) GIRISH Page 2 of 2

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