THE COMMISSIONER OF INCOME TAX-II vs. GUJARAT LEASE FINANCING LTD.

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TAXAP/28/2009HC GujaratGJHC24040834200914 September 2022Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR,HONOURABLE MR. JUSTICE ASHUTOSH SHASTRI2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court observed that the tax effect in the present appeal is less than the monetary limit fixed under the extant Circulars/Notifications issued by the CBDT, specifically mentioning Circular No. 17 of 2019 dated 08.08.2019. Consequently, the Court held that the appeal would not survive for consideration on merits due to the low tax effect. The appeal was therefore disposed of on this ground. However, the Court made it clear that if the appeal falls under any exception carved out in the said Circulars, either party is at liberty to seek revival of the appeal by filing an appropriate note in the Registry. The question of law raised in the appeal was kept open.

What were the facts?

This appeal by the assessee, Gujarat Lease Financing Ltd., is directed against an order of the Income Tax Appellate Tribunal (ITAT). The Assessing Officer had passed an order leading to a consequential demand. The present appeal before the High Court concerns this order and demand. The tax effect arising from the dispute is stated to be less than the monetary limit prescribed by Circular No. 17 of 2019, dated August 8, 2019, issued by the Central Board of Direct Taxes (CBDT). Consequently, the appeal would not ordinarily survive for consideration.

What were the issues?

1. Whether the appeal involves a substantial question of law as to the interpretation of the Constitution of India or any order made thereunder? (This question is part of the standard court procedure and not a substantive issue for the appeal's merits). The primary issue before the High Court is whether the appeal should be dismissed due to a low tax effect, as per CBDT Circular No. 17 of 2019. Assessee's Contention: The judgment does not explicitly record the assessee's arguments. However, the appeal is by the assessee, and the outcome suggests the assessee's position regarding the low tax effect was considered. Revenue's Contention: The judgment does not explicitly record the revenue's arguments. However, the appeal is filed by the Commissioner of Income Tax-II, indicating the revenue's involvement in the dispute.

AI-generated summary — verify with the full judgment below

C/TAXAP/28/2009 JUDGMENT DATED: 14/09/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 28 of 2009

FOR APPROVAL AND SIGNATURE:

HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR

and HONOURABLE MR. JUSTICE ASHUTOSH J. SHASTRI ============================================= 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the Constitution of India or any order made thereunder ? ============================================= THE COMMISSIONER OF INCOME TAX-II Versus GUJARAT LEASE FINANCING LTD. ============================================= Appearance: MR MR BHATT SR. ADVOCATE with MR KARAN SANGHANI for M R BHATT & CO.(5953) for the Appellant(s) No. 1 MR BANDISH SOPARKAR for MRS SWATI SOPARKAR(870) for the Opponent(s) No. 1 ============================================= CORAM:HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR and HONOURABLE MR. JUSTICE ASHUTOSH J. SHASTRI

Date : 14/09/2022

ORAL JUDGMENT (PER : HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR) 1. This appeal by the assessee is directed against the order of the Income Tax Appellate Tribunal. The order passed by the Page 1 of 2

C/TAXAP/28/2009 JUDGMENT DATED: 14/09/2022 Assessing Officer and the consequential demand, notice issued thereunder would indicate that the tax effect is less than the monetary limit fixed under extant Circulars/Notifications issued by the Central Board of Direct Taxes (CBDT), by virtue of which the appeal would not survive for consideration in light of the low effect of tax prescribed under the said Notifications namely Circular No. 17 of 19 dated 08.08.2019. Hence, appeal stands disposed of as having low tax effect and keeping open the question of law raised in the appeal. However, it is made clear that in the event of this appeal falling under the category of any exception carved out under the said extant Circulars, either of the parties would be at liberty to seek for revival of this appeal by filing appropriate note in the Registry. (ARAVIND KUMAR,CJ) (ASHUTOSH J. SHASTRI, J) phalguni Page 2 of 2

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