PRINCIPAL COMMISSIONER OF INCOME TAX - 6 vs. SHREE KRISHNA DEVELOPERS

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TAXAP/41/2018HC GujaratGJHC24008398201807 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court decided to dispose of the tax appeal. The reasoning was based on the Revenue's submission that the appeal was not pressed due to a low tax effect, as per Circular No. 17/2019. This circular establishes monetary limits for appeals, and the appeal in question fell within these limits for not being pursued. The ratio decidendi is that appeals with a low tax effect, as defined by CBDT circulars, can be withdrawn or not pressed by the Revenue. The operative direction was to dispose of the appeal accordingly. Liberty was reserved for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the appeal was disposed of on procedural grounds.

What were the facts?

This is a Tax Appeal filed by the Principal Commissioner of Income Tax - 6 (the Revenue) against Shree Krishna Developers (the Assessee). The appeal was listed for passing an appropriate order. The appeal was notified for the purpose of passing an order due to low tax effect. The Revenue stated that the tax appeal is not pressed in view of the low tax effect, referencing Circular No. 17/2019 dated 8th August, 2019, issued by the Central Board Direct Taxes. The circular outlines monetary limits for filing appeals. The High Court noted the appeal is disposed of accordingly, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? Assessee's Contention: The judgment does not record any specific contentions made by the assessee. However, the appeal being not pressed by the Revenue implies an acceptance of the low tax effect policy. Revenue's Contention: The Revenue argued that the appeal is not pressed due to the low tax effect, in accordance with Circular No. 17/2019. This circular sets monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. The appeal is being disposed of based on this policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/41/2018 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 41 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX - 6 Versus SHREE KRISHNA DEVELOPERS ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 DARSHAN R PATEL(8486) for the Opponent(s) No. 1 RULE SERVED(64) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

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 8 th 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 8 th 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/41/2018 ORDER DATED: 07/01/2022 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 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) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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