PRINCIPAL COMMISSIONER OF INCOME TAX-5 vs. MEENABEN M PARIKH

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TAXAP/533/2015HC GujaratGJHC24047878201527 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 appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated 8th August, 2019. The circular establishes monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. The court disposed of the appeal accordingly. The reasoning is based on the Revenue's decision not to pursue the appeal due to the low tax effect, aligning with the CBDT's policy to avoid litigation in such cases. The ratio decidendi is that appeals with a low tax effect, as defined by CBDT circulars, may not be pressed by the Revenue. The operative direction is the disposal of the appeal. The court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-5 (the Revenue) against Meenaben M Parikh (the assessee). The appeal was listed for an order due to a low tax effect. The High Court of Gujarat at Ahmedabad was considering the appeal. The procedural history indicates that the appeal was filed, and the Registry notified it for an appropriate order. The Revenue's counsel appeared, while the opponent (assessee) had 'RULE UNSERVED'. The court noted the appeal was not pressed by the Revenue.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, in light of Circular No. 17/2019 issued by the CBDT? (Question of law) Assessee's contentions: The judgment does not record any specific contentions from the assessee. The appeal was not pressed by the Revenue. Revenue's contentions: The Revenue stated that the appeal is not pressed in view of the low tax effect, referencing Circular No. 17/2019, dated 8th August, 2019. The circular provides monetary limits for filing appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. The Revenue implicitly acknowledged that the tax effect in this appeal fell below this threshold.

AI-generated summary — verify with the full judgment below

C/TAXAP/533/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 533 of 2015 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-5 Versus MEENABEN M PARIKH ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE UNSERVED(68) 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. Page 1 of 2

C/TAXAP/533/2015 ORDER 3. According to the new policy as reflected from the Circular referred to above, the table for monetary limits is as follows: Sr.No. Appeals/SLPs in Income-tax matters Monetray

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) PALAK Page 2 of 2

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