COMMISSIONER OF INCOME TAX - III vs. M/S PAREKH ISHWARLAL CHUNILAL

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TAXAP/505/2010HC GujaratGJHC24046065201007 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 due to its low tax effect, in accordance with Circular No. 17/2019. The Court noted the policy outlined in the circular, which specifies monetary limits for appeals. The appeal was not pressed by the Revenue, and the Court acknowledged the applicability of the circular. The operative direction is to dispose of the appeal accordingly. The Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue regarding the merits of the assessment was decided.

What were the facts?

The appeal was filed by the Commissioner of Income Tax - III against M/s. Parekh Ishwarlal Chunilal. The appeal was notified for passing an appropriate order due to its low tax effect. The decision to dispose of the appeal was made in consideration 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 appeal was not pressed by the appellant in light of this circular and its associated monetary limits.

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) Assessee's contention: The assessee did not explicitly argue any points as the appeal was not pressed. However, the judgment implies that the assessee would benefit from the dismissal based on the circular. Revenue's contention: The Revenue, through its counsel, stated that the tax appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019. The Revenue relied on the policy reflected in the said circular, which sets monetary limits for appeals before various authorities, including the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/505/2010 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 505 of 2010 ========================================================== COMMISSIONER OF INCOME TAX - III Versus M/S PAREKH ISHWARLAL CHUNILAL ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MRS SWATI SOPARKAR(870) 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/505/2010 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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