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

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TAXAP/394/2017HC GujaratGJHC24056928201727 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 is less than Rs. 50,00,000/-, and in light of Circular No. 3/2018 which prohibits filing appeals with such tax effect and is retrospectively applicable, the Revenue's learned senior standing counsel did not press the appeal. Consequently, the High Court disposed of the appeal as 'not pressed'. The reasoning is based on the direct applicability of the CBDT circular to the present case. The operative direction is to dispose of the appeal as not pressed. The court also noted that if there is any error in the computation of the tax effect or if the circular is not applicable for any reason, the appellant would be at liberty to seek revival of the appeal.

What were the facts?

This is a Tax Appeal filed by the Principal Commissioner of Income Tax-4, Ahmedabad (Revenue) against Sports Club of Gujarat Ltd (Assessee). The appeal challenges an order or action that is not specified in the provided text. The assessment year(s) are also not mentioned. The procedural history indicates that the appeal was heard by the High Court of Gujarat at Ahmedabad. A crucial fact admitted by both parties is that the tax effect involved in the appeal is less than Rs. 50,00,000/-.

What were the issues?

The primary issue before the High Court was whether the appeal filed by the Revenue should be entertained given the tax effect. The Revenue, through its learned senior standing counsel, argued that the appeal should not be pressed. The Assessee, represented by its learned advocate, did not present any arguments on the merits of the case. The decision hinges on 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.

AI-generated summary — verify with the full judgment below

C/TAXAP/394/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 394 of 2017 ========================================================== PR. COMMISSIONER OF INCOME TAX-4, AHMEDABAD Versus 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/394/2017 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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