THE PRINCIPAL COMMISSIONER OF INCOME TAX 2 vs. PRANAY BHARATKUMAR SHAH

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TAXAP/345/2019HC GujaratGJHC24037080201907 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 held that the Tax Appeal is not pressed by the Revenue due to the low tax effect, as per Circular No. 17/2019. The Court noted the monetary limits prescribed by the circular for appeals before various forums, including the High Court (Rs. 1,00,00,000). Since the appeal was not pressed by the Revenue in light of this circular, the Court disposed of the appeal accordingly. The Court also reserved the 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?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax (Revenue) against Pranay Bharatkumar Shah (Assessee). The appeal was listed for an appropriate order by the Registry. The appeal was notified due to its low tax effect. The Court was to dispose of the appeal in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular outlines 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). The present appeal falls under the category of appeals before the High Court.

What were the issues?

1. Whether the Tax Appeal, filed by the Revenue, should be dismissed due to low tax effect in light of Circular No. 17/2019? (Question of law and fact) Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The appeal is being disposed of based on the Revenue's stance and the Court's interpretation of the circular. Revenue's Contention: The Revenue, through its counsel, stated that the present tax appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019. The Revenue relied on Circular No. 17/2019 to justify not pressing the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/345/2019 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 345 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX 2 Versus PRANAY BHARATKUMAR SHAH ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MRS SWATI SOPARKAR(870) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

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. 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/345/2019 ORDER DATED: 07/01/2022 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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