THE PRINCIPAL COMMISSIONER OF INCOME TAX 5 vs. NIMISH KALYANBHAI VASA

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TAXAP/458/2019HC GujaratGJHC24041761201909 September 2019Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat at Ahmedabad held that the tax appeal is not pressed by the Revenue in view of Circular No. 17/2019 dated August 8, 2019. This circular outlines revised monetary limits for filing appeals, with Rs. 1,00,00,000 being the threshold for appeals before the High Court. Consequently, the appeal was disposed of in accordance with this policy. The Court also reserved the 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 No specific finding was made on the merits of the original dispute, as the appeal was withdrawn by the Revenue based on administrative policy.

What were the facts?

The Principal Commissioner of Income Tax 5 (the Revenue) filed a tax appeal before the High Court of Gujarat at Ahmedabad against an order concerning Nimish Kalyanbhai Vasa (the assessee). The appeal was notified for an appropriate order due to a low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes, which revised the 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 appeal should be dismissed due to a low tax effect, as per Circular No. 17/2019. (Question of law) Assessee's contentions: The assessee did not file any arguments as the appeal was not pressed by the Revenue. The judgment does not record any specific contentions from the assessee. Revenue's contentions: The Revenue contended that the appeal should be disposed of in view of Circular No. 17/2019, dated August 8, 2019, due to the low tax effect. The circular establishes revised monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. The Revenue stated that the appeal was not pressed on this basis.

AI-generated summary — verify with the full judgment below

C/TAXAP/458/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 458 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX 5 Versus NIMISH KALYANBHAI VASA ========================================================== 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 A.C. RAO

Date : 09/09/2019

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/458/2019 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) (A. C. RAO, J) aruna Page 2 of 2

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