COMMISSIONER OF INCOME TAX-V vs. SONAL D VORA

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TAXAP/398/2013HC GujaratGJHC24043369201327 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 appeals were not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The circular establishes a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Since the tax effect in these appeals was below this limit, the Revenue chose not to press them. Consequently, the appeals were disposed of accordingly. The court reserved liberty for the Revenue to revive the tax appeals in case of any difficulty. No specific finding on the merits of the original assessment or the grounds of appeal was made.

What were the facts?

The Commissioner of Income Tax-V (Revenue) filed two tax appeals, R/TAX APPEAL NO. 398 of 2013 and R/TAX APPEAL NO. 402 of 2013, against Sonal D Vora (assessee). The appeals were notified for disposal due to low tax effect. The appeals were filed under the Income Tax Act. The procedural history indicates that the appeals were brought before the High Court of Gujarat at Ahmedabad.

What were the issues?

The Tribunal had to decide whether to proceed with the appeals given the low tax effect. The Revenue argued that the appeals should be disposed of in accordance with Circular No. 17/2019, dated 8th August, 2019, which sets monetary limits for filing appeals. The assessee's arguments are not recorded in the judgment. The core issue revolves around the application of the CBDT's circular on monetary limits for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/398/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 398 of 2013 With R/TAX APPEAL NO. 402 of 2013 ========================================================== COMMISSIONER OF INCOME TAX-V Versus SONAL D VORA ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE UNSERVED(68) 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 appeals for the purpose of passing an appropriate order. The captioned appeals have been notified because of the low tax effect. The appeals are 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. These tax appeals are 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/398/2013 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 appeals are 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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