COMMISSIONER OF INCOME TAX, GANDHINAGAR vs. PARESHBHAI BABUBHAI PATEL

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TAXAP/292/2018HC GujaratGJHC24011285201827 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The Gujarat High Court held that the tax appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The Court noted the revised monetary limits for appeals, including the limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal was disposed of accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific findings on the merits of the original dispute were made, as the appeal was decided on procedural grounds related to the tax effect and departmental policy.

What were the facts?

The appeal, C/TAXAP/292/2018, was filed by the Commissioner of Income Tax, Gandhinagar (the Revenue) against Pareshbhai Babubhai Patel (the assessee). The appeal was notified for an appropriate order due to low tax effect. The Gujarat High Court considered Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which revised the monetary limits for filing appeals. The circular specifies monetary limits for appeals before the Income Tax Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). The appeal was disposed of in light of this circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, in light of Circular No. 17/2019 issued by the CBDT? (Question of law) Assessee's Contention: The assessee did not appear to have made any specific arguments recorded in the judgment. However, the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue submitted that the appeal was not pressed in view of the low tax effect, referencing Circular No. 17/2019, dated August 8, 2019. The circular outlines revised monetary limits for filing appeals. The Revenue acknowledged that the appeal falls within the scope of this circular, which guides the decision on whether to pursue appeals with low tax effect.

AI-generated summary — verify with the full judgment below

C/TAXAP/292/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 292 of 2018 ========================================================== COMMISSIONER OF INCOME TAX, GANDHINAGAR Versus PARESHBHAI BABUBHAI PATEL ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 DARSHAN R PATEL(8486) 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/292/2018 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) KUMAR ALOK Page 2 of 2

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