COMMISSIONER OF INCOME TAX - RAJKOT - I vs. SHREEJIKRUPA BUILDCON LTD

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TAXAP/387/2013HC GujaratGJHC24043364201327 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 decided that the appeal is not pressed due to the low tax effect, in view of Circular No. 17/2019 dated 8th August, 2019. The Court noted the monetary limits specified in the circular 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). Based on these limits and the fact that the appeal had a low tax effect, 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.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax - Rajkot - I against Shreejikrupa Buildcon Ltd. The appeal was listed for an appropriate order by the Registry. The appeal was notified due to its low tax effect. The High Court of Gujarat at Ahmedabad was considering the appeal. The appeal was filed against an order or action of an authority, but the specific authority and the assessment year(s) are not recorded in the judgment. The amount in dispute is also not explicitly stated, but the context of the appeal being notified for low tax effect implies it falls below certain monetary thresholds.

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 appeal is not pressed due to the low tax effect, as per Circular No. 17/2019. The assessee relies on the policy outlined in this circular, which specifies monetary limits for filing appeals before various authorities. Revenue's Contention: The judgment does not record any specific contention from the revenue regarding the merits of the appeal. The revenue's position is implicitly that the appeal should be disposed of in accordance with the circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/387/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 387 of 2013 ========================================================== COMMISSIONER OF INCOME TAX - RAJKOT - I Versus SHREEJIKRUPA BUILDCON LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 NOTICE SERVED(4) 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/387/2013 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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