COMMISSIONER OF INCOME TAX RAJKOT II vs. RAMESHBHAI GORDHANBHAI HIRANI

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TAXAP/550/2014HC GujaratGJHC24044874201427 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 tax appeal is not pressed by the appellant (Revenue) in view of the low tax effect, as per Circular No. 17/2019. The circular establishes a monetary limit of Rs. 1,00,000 for appeals before the High Court. Since the appeal falls within this low tax effect category, it was disposed of accordingly. The Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. The ratio decidendi is that appeals with a low tax effect, as defined by the CBDT circular, should be withdrawn or not pressed by the Revenue to streamline litigation and focus resources on more significant cases. The operative direction was to dispose of the appeal as not pressed.

What were the facts?

This is a tax appeal filed by the Commissioner of Income Tax, Rajkot II, against Rameshbhhai Gordhanbhai Hirani. The appeal was notified for an appropriate order due to low tax effect. The appeal was disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines new monetary limits for filing appeals. The appeal was not pressed by the appellant in view of these revised limits.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? Assessee's Contention: The assessee does not appear to have made any specific arguments recorded in the judgment. However, the appeal was not pressed by the appellant (Revenue) due to the low tax effect, implying acceptance of the circular's applicability. Revenue's Contention: The Revenue, through its counsel, stated that the tax appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019, dated August 8, 2019. The circular specifies monetary limits for appeals before various authorities, including the High Court, which was Rs. 1,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/550/2014 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 550 of 2014 ========================================================== COMMISSIONER OF INCOME TAX RAJKOT II Versus RAMESHBHAI GORDHANBHAI HIRANI ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR TUSHAR P HEMANI(2790) for the Opponent(s) No. 1 MS VAIBHAVI K PARIKH(3238) 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/550/2014 ORDER Sr. No. Appeals/SLPs in Incometax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,000 3 Before Supreme Court 2,00,000 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) CHANDRESH Page 2 of 2

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