PR. COMMISSIONER OF INCOME TAX-3, AHMEDABAD vs. DINESH JASRAJ JAIN

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TAXAP/525/2017HC GujaratGJHC24056988201707 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 appeal as not pressed due to low tax effect, in accordance with CBDT Circular No. 17/2019. The circular establishes a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The Court noted that the Revenue chose not to press the appeal based on this policy. The reasoning is that the appeal falls below the prescribed monetary threshold for appeals to the High Court. The ratio is that appeals below the stipulated monetary limits in CBDT circulars are to be disposed of without a decision on merits. 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.

What were the facts?

The appeal was filed by the Pr. Commissioner of Income Tax-3, Ahmedabad (Revenue) against Dinesh Jasraj Jain (Assessee). The appeal was notified for passing 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 Direct Taxes, which sets monetary limits for filing appeals. The circular specifies 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 tax appeal in case of any difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in light of CBDT Circular No. 17/2019? (Question of law) Contentions: Assessee: Not recorded. Revenue: The appeal is not pressed in view of the low tax effect, as per Circular No. 17/2019, dated August 8, 2019, which sets monetary limits for appeals before the High Court at Rs. 1,00,00,000. The Revenue relied on the policy reflected in this circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/525/2017 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 525 of 2017 ========================================================== PR. COMMISSIONER OF INCOME TAX-3, AHMEDABAD Versus DINESH JASRAJ JAIN ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MS VAIBHAVI K PARIKH(3238) 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/525/2017 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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