PRINCIPAL COMMISSIONER OF INCOME TAX vs. SHRI RAJAN VASUDEV DAPKI

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TAXAP/466/2017HC GujaratGJHC24056965201727 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the appeal is not pressed by the revenue in view of the low tax effect, as per Circular No. 17/2019. The reasoning is based on the updated policy of the Central Board of Direct Taxes which sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Since the tax effect in this case falls below this limit, the revenue has chosen not to press the appeal. The ratio is that appeals with a low tax effect, as defined by CBDT circulars, may not be pursued. The appeal is disposed of accordingly, with liberty reserved for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

This is a Tax Appeal filed by the Principal Commissioner of Income Tax against Shri Rajan Vasudev Dapki. The appeal was listed for an appropriate order due to a low tax effect. The appeal was to be disposed of in light of Circular No. 17/2019 dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. The circular outlines monetary limits for filing appeals before various authorities, including the High Court, which is Rs. 1,00,00,000.

What were the issues?

1. Whether the appeal is maintainable before the High Court given the low tax effect and the policy laid down in Circular No. 17/2019? (Question of law) The assessee did not present any arguments as the appeal was not pressed. The revenue argued that the appeal should be disposed of in accordance with Circular No. 17/2019 due to the low tax effect, referencing the monetary limit for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/466/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 466 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX Versus SHRI RAJAN VASUDEV DAPKI ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) 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/466/2017 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) GIRISH Page 2 of 2

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