PRINCIPAL COMMISSINER OF INCOME TAX-3 vs. DEVENDRA NARANBHAI PATEL

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TAXAP/466/2018HC GujaratGJHC24024935201827 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 disposed of the appeal accordingly. The reasoning is based on the new policy reflected in the circular, which sets monetary limits for appeals. The operative direction is the disposal of the appeal. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was decided on merits.

What were the facts?

The Principal Commissioner of Income Tax-3 (Revenue) filed a tax appeal before the High Court of Gujarat at Ahmedabad against Devendra Naranbhai Patel (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 August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The judgment notes the monetary limit for appeals before the High Court is Rs. 1,00,00,000. The appeal was 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 due to low tax effect, as per Circular No. 17/2019? (Question of law). The Revenue argued that the appeal is not pressed in view of the low tax effect, citing Circular No. 17/2019. The Assessee's arguments are not recorded in the judgment. The judgment does not explicitly state the specific grounds of the appeal or the assessment year(s) involved.

AI-generated summary — verify with the full judgment below

C/TAXAP/466/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 466 of 2018 ========================================================== PRINCIPAL COMMISSINER OF INCOME TAX-3 Versus DEVENDRA NARANBHAI PATEL ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) 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/466/2018 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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