THE PRINCIPAL COMMISSIONER OF INCOME TAX I vs. SHRI GOPICHAND CHHABARIA

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TAXAP/454/2018HC GujaratGJHC24025295201827 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 Tax Appeal is not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The Court noted the monetary limits prescribed by the circular for appeals before the High Court, which is Rs. 1,00,00,000. Since the tax effect in this appeal was below this limit, the Revenue chose not to pursue it. The appeal was disposed of accordingly. The Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original assessment or any other substantive issue.

What were the facts?

The Principal Commissioner of Income Tax I (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad. The appeal was filed against Shri Gopichand Chhabaria (the assessee). The appeal was notified for an appropriate order due to low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019, dated 8th August, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

What were the issues?

1. Whether the Tax Appeal should be dismissed due to low tax effect in accordance with Circular No. 17/2019? (Question of law) The Revenue argued that the appeal is not pressed in view of the low tax effect, as per Circular No. 17/2019. The circular establishes monetary limits for appeals, and the tax effect in this case falls below the threshold for appeals before the High Court (Rs. 1,00,00,000). The assessee did not present any arguments as the appeal was not pressed by the Revenue.

AI-generated summary — verify with the full judgment below

C/TAXAP/454/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 454 of 2018 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX I Versus SHRI GOPICHAND CHHABARIA ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE NOT RECD BACK(63) 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 referred to above, the table for monetary limits is as follows: Page 1 of 2

C/TAXAP/454/2018 ORDER Sr. No. Appeals/SLPs in Incometax 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) (BHARGAV D. KARIA, J) KUMAR ALOK Page 2 of 2

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