PRINCIPAL COMMISSIONER OF INCOME TAX-1, RAJKOT vs. JAYANTIBHAI THAKKAR

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TAXAP/533/2017HC GujaratGJHC24056995201727 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 should be disposed of in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The Court noted that the appeal was not pressed by the Revenue in light of this circular, which establishes monetary limits for appeals. Specifically, for appeals before the High Court, the monetary limit is Rs. 1,00,00,000. The judgment does not specify the exact tax effect of the present appeal, but it was considered to be below the threshold warranting further litigation. The operative direction was to dispose of the appeal accordingly. Liberty was reserved for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the appeal was disposed of on procedural grounds related to the tax effect policy.

What were the facts?

The Principal Commissioner of Income Tax-1, Rajkot (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad. The appeal was against an order passed by an authority below. The appeal was notified for the purpose of 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 of Direct Taxes, which revised monetary limits for filing appeals. The appeal was disposed of in accordance with this circular, 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, considering the policy outlined in Circular No. 17/2019? Assessee's Contentions: The judgment records no specific contentions from the assessee. However, the appeal was not pressed by the Revenue. Revenue's Contentions: The Revenue contended that the appeal should be disposed of in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. This circular sets revised monetary limits for appeals before various authorities, including the High Court. The appeal was not pressed on this ground.

AI-generated summary — verify with the full judgment below

C/TAXAP/533/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 533 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-1, RAJKOT Versus JAYANTIBHAI THAKKAR ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE SERVED(64) 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/533/2017 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) GIRISH Page 2 of 2

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