COMMISSIONER OF INCOME TAX AHMEDABAD III vs. ASHABEN LALLUBHAI DESAI

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TAXAP/535/2013HC GujaratGJHC24043404201327 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 decided to dispose of the appeal as not pressed. The reasoning was based on the Revenue's submission that the appeal was not being pressed due to its low tax effect, aligning with the policy outlined in Circular No. 17/2019. This circular establishes monetary limits for appeals at various levels, including before the High Court. The Court acknowledged the revised monetary limit for appeals before the High Court as Rs. 1,00,00,000. The ratio decidendi is that appeals below the stipulated monetary threshold, as per CBDT circulars, can be withdrawn or not pressed by the Revenue. The operative direction was to dispose of the appeal accordingly. The Court also reserved the 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 Commissioner of Income Tax, Ahmedabad III, against Ashaben Lallubhai Desai. The appeal was listed for an order due to its low tax effect. The appeal was not pressed by the appellant (Revenue) in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals. The High Court noted the monetary limit for appeals before the High Court as Rs. 1,00,00,000.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect as per Circular No. 17/2019? (Question of procedure/policy) Assessee's Contention: The judgment does not record any specific arguments made by the assessee. The appeal was not pressed by the Revenue. Revenue's Contention: The Revenue stated that the appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019. The circular provides revised monetary limits for appeals, and the appeal falls below the threshold for filing before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/535/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 535 of 2013 ========================================================== COMMISSIONER OF INCOME TAX AHMEDABAD III Versus ASHABEN LALLUBHAI DESAI ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 NOTICE UNSERVED(8) 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 Page 1 of 2

C/TAXAP/535/2013 ORDER 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

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) Vahid Page 2 of 2

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