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

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TAXAP/259/2019HC GujaratGJHC24036393201927 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 appeal is not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The court disposed of the appeal accordingly. The reasoning is based on the Revenue's decision not to pursue the appeal due to the monetary limits specified in the circular. The court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original dispute was 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 against an order concerning Kiritkumar Laxmanbhai Patel (the assessee). The appeal was notified for an appropriate order due to a low tax effect. The Revenue decided not to press the appeal in light of 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 a low tax effect, as per Circular No. 17/2019? The Revenue argued that the appeal is not pressed in view of the low tax effect and the policy outlined in Circular No. 17/2019. The assessee's arguments are not recorded in the judgment. The issue revolves around the application of the CBDT's monetary limits for appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/259/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 259 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/259/2019 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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