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

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TAXAP/506/2010HC GujaratGJHC24046066201007 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 without pressing it, in accordance with Circular No. 17/2019. The reasoning was based on the low tax effect of the appeal and the policy of the Central Board of Direct Taxes to withdraw or not press appeals below a certain monetary threshold. The circular sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The Court explicitly stated that the appeal is disposed of accordingly. Liberty was reserved for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original assessment or the grounds of appeal was made, as the appeal was not pressed.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax - III (the Revenue) against M/s. Parekh Ishwarlal Chunilal (the assessee). The appeal was listed for an appropriate order by the Registry. The appeal was notified due to its 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 sets monetary limits for filing appeals. The circular provides a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The High Court reserved liberty for the Revenue to revive the appeal in case of any difficulty.

What were the issues?

The primary issue before the High Court was whether to proceed with the hearing of the Tax Appeal filed by the Revenue, given the low tax effect and the policy outlined in Circular No. 17/2019. The Revenue's contention was that the appeal should be disposed of without pressing it due to the low tax effect, as per the aforementioned circular. The judgment does not record any specific arguments from the assessee's side regarding the merits of the appeal, as the appeal was not pressed by the Revenue.

AI-generated summary — verify with the full judgment below

C/TAXAP/506/2010 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 506 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 Page 1 of 2

C/TAXAP/506/2010 ORDER DATED: 07/01/2022 referred to above, the table for monetary limits is as follows:- 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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