PRINCIPAL COMMISSIONER OF INCOME TAX-1, vs. SHAH INVESTOR'S HOME LIMITED

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TAXAP/280/2017HC GujaratGJHC24056889201707 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 decided to dispose of the tax appeals. The reasoning was based on Circular No. 17/2019, which mandates that appeals with a low tax effect, below the specified monetary limits, should not be pursued. The Revenue explicitly stated that the appeals were not pressed due to this low tax effect. The Court noted the monetary limits for appeals before different authorities as per the circular: Rs. 50,00,000 before the Appellate Tribunal, Rs. 1,00,00,000 before the High Court, and Rs. 2,00,00,000 before the Supreme Court. Consequently, the appeals were disposed of accordingly. The Court reserved liberty for the Revenue to revive the appeals in case of any difficulty. No specific issue was left undecided; the disposal was based on the stated policy.

What were the facts?

The Principal Commissioner of Income Tax-1 (Revenue) filed three tax appeals (R/TAX APPEAL NO. 279 of 2017, R/TAX APPEAL NO. 280 of 2017, and R/TAX APPEAL NO. 281 of 2017) against Shah Investor's Home Limited (Assessee). The appeals were notified for an appropriate order due to low tax effect. The Revenue stated that the appeals were not pressed in view of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular provides monetary limits for filing appeals. The High Court of Gujarat at Ahmedabad was considering the appeals.

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) Assessee's contentions: The assessee did not present any arguments as the appeal was not pressed by the Revenue. Revenue's contentions: The Revenue argued that the appeal should be disposed of in light of Circular No. 17/2019, which sets monetary limits for appeals. The appeal was not pressed due to the low tax effect, falling below the threshold stipulated in the circular for appeals before the High Court (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/279/2017 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 279 of 2017 With R/TAX APPEAL NO. 280 of 2017 With R/TAX APPEAL NO. 281 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-1, Versus SHAH INVESTOR'S HOME LIMITED ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

COMMON 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. Page 1 of 2

C/TAXAP/279/2017 ORDER DATED: 07/01/2022 3. According to the new policy as reflected from the Circular referred to above, the table for monetary limits is as follows:- 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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