THE PRINCIPAL COMMISSIONER OF INCOME TAX 3 vs. NIRAV SHAH

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TAXAP/356/2019HC GujaratGJHC24038854201927 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 held that the Tax Appeal is 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 monetary limits prescribed by the circular for appeals before different authorities, including Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal was disposed of accordingly. The Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

This is a Tax Appeal filed by the Principal Commissioner of Income Tax (Revenue) against Nirav Shah (Assessee). The appeal was notified for an appropriate order due to low tax effect. The appeal was filed before the High Court of Gujarat at Ahmedabad. 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, which sets monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, considering the policy outlined in Circular No. 17/2019? The Revenue argued that the appeal is not pressed due to the low tax effect, referencing Circular No. 17/2019. The Assessee's contentions are not recorded in the judgment. The Revenue relied on Circular No. 17/2019, dated August 8, 2019.

AI-generated summary — verify with the full judgment below

C/TAXAP/356/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 356 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX 3 Versus NIRAV SHAH ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MS VAIBHAVI K PARIKH(3238) 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/356/2019 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) GIRISH Page 2 of 2

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