COMMISSIONER OF INCOME TAX V vs. KISAN DISCRETIONARY FAMILY TRUST

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TAXAP/339/2013HC GujaratGJHC24043351201327 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 disposed of the Tax Appeal. The Court noted that the appeal was not pressed by the Revenue due to its low tax effect, in accordance with Circular No. 17/2019. This circular sets revised monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. Since the tax effect of the present appeal was below this limit, the Revenue chose not to pursue it. The Court explicitly stated that the appeal is disposed of accordingly. However, liberty was reserved for the Revenue to revive the tax appeal in case of any difficulty. No specific issue regarding the merits of the assessment was decided.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax (the Revenue) against Kisan Discretionary Family Trust (the assessee). The appeal was listed for an appropriate order by the Registry. The appeal was notified due to its 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 High Court of Gujarat at Ahmedabad was considering the appeal.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect as per Circular No. 17/2019? Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue stated that the appeal is not pressed in view of the low tax effect, referencing Circular No. 17/2019. The circular establishes monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. The appeal's low tax effect falls below this threshold, justifying its withdrawal.

AI-generated summary — verify with the full judgment below

C/TAXAP/339/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 339 of 2013 ========================================================== COMMISSIONER OF INCOME TAX V Versus KISAN DISCRETIONARY FAMILY TRUST ========================================================== Appearance: MRS MAUNA M BHATT(174) 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 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 Page 1 of 2

C/TAXAP/339/2013 ORDER 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

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) Vahid Page 2 of 2

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