PRINCIPAL COMMISSIONER OF INCOME TAX-7 vs. UDAYKUMAR CHHABILDAS PATEL

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TAXAP/56/2018HC GujaratGJHC24008403201807 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 of Gujarat held that the appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The Court noted the monetary limits for appeals before various authorities as stipulated in the circular. Consequently, the appeal was disposed of in accordance with this policy. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The ratio is that appeals with a low tax effect, falling below the prescribed monetary limits in CBDT circulars, may not be pressed and can be disposed of accordingly, with liberty to revive if necessary.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-7 against Udaykumar Chhabildas Patel. The appeal was notified for an appropriate order by the Registry. The appeal was brought before the High Court of Gujarat at Ahmedabad. The primary reason for the appeal's notification and subsequent disposal was its low tax effect, as per Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The appeal was not pressed by the appellant due to this low tax effect.

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 law and procedure). The Revenue, represented by Mr. Manish R. Bhatt, Senior Advocate, argued that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The judgment does not record any specific arguments from the assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/56/2018 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 56 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-7 Versus UDAYKUMAR CHHABILDAS PATEL ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(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/56/2018 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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