PR. COMMISSIONER OF INCOME TAX-4, AHMEDABAD vs. THE SPORTS CLUB OF GUJARAT LTD

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TAXAP/393/2017HC GujaratGJHC24056927201727 November 2018Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE DR. JUSTICE A. P. THAKER2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that since the tax effect involved in the appeal was less than Rs. 50,00,000/-, and in light of Circular No. 3/2018 which makes such appeals non-maintainable before the High Court and is retrospectively applicable, the learned senior standing counsel for the appellant (Revenue) did not press the appeal. Consequently, the appeal was disposed of as not pressed. The Court also noted that if there was any error in the computation of the tax effect or if the circular was not applicable for any reason, the appellant would be at liberty to seek revival of the appeal. No specific issue was left undecided, as the appeal was withdrawn by the appellant.

What were the facts?

This is an appeal filed by the Pr. Commissioner of Income Tax-4, Ahmedabad (the Revenue) against an order concerning The Sports Club of Gujarat Ltd (the Assessee). The assessment year(s) are not explicitly stated. The appeal challenges an order passed by an Income Tax Appellate Tribunal (though the specific order is not detailed). The procedural history is that the appeal was filed before the High Court of Gujarat. It is an admitted position between the parties that the tax effect involved in this appeal is less than Rs. 50,00,000/-.

What were the issues?

The High Court had to decide whether to proceed with the appeal given the tax effect. The Revenue, represented by Mrs. Mauna Bhatt, did not press the appeal. The Assessee, represented by Mr. B. S. Soparkar, was present. The core issue revolves around the applicability of Circular No. 3/2018 dated 11th July, 2018, issued by the Central Board of Direct Taxes, which stipulates that no appeal where the tax effect does not exceed Rs. 50,00,000/- shall be filed before the High Court and is retrospectively applicable to pending appeals. The Revenue's contention, based on this circular, was that the appeal should not be pressed.

AI-generated summary — verify with the full judgment below

C/TAXAP/393/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 393 of 2017 ========================================================== PR. COMMISSIONER OF INCOME TAX-4, AHMEDABAD Versus THE SPORTS CLUB OF GUJARAT LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the APPELLANT(s) No. 1 MR B S SOPARKAR(6851) for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE DR.JUSTICE A. P. THAKER

Date : 27/11/2018

ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mrs. Mauna Bhatt, learned senior standing counsel for the appellant and Mr. B. S. Soparkar, learned advocate for the respondent. 2. It is an admitted position between the parties that the tax effect involved in this appeal is less than Rs.50,00,000/-. Under the circumstances, in the light of the Circular No.3/2018 dated 11th July, 2018 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes which provides that no appeal wherein the tax effect does not exceed the monetary limit of Rs.50,00,000/- shall be filed before the High Court and has also been made retrospectively applicable to pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. Page 1 of 2

C/TAXAP/393/2017 ORDER 3. The appeal is accordingly disposed of as not pressed in the light of the Circular dated 11th July, 2018. However, in case there is any error in the computation of the tax effect involved or if for any reason, the circular is not applicable, it would be open for the appellant to seek revival of the appeal. (HARSHA DEVANI, J) (A. P. THAKER, J) Z.G. SHAIKH Page 2 of 2

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