COMMISSIONER OF INCOME TAX vs. M/S SOHAM BUILDERS

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TAXAP/568/2010HC GujaratGJHC24046075201007 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 held that the appeal is not pressed by the Revenue due to the low tax effect, in accordance with Circular No. 17/2019 dated August 8, 2019. The circular establishes monetary limits for appeals, and the appeal in question falls below the threshold for High Court appeals. Consequently, the appeal was disposed of in line with this policy. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the assessment year(s) were not recorded in the judgment.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax (Revenue) against M/s Soham Builders (Assessee). The appeal was listed for an appropriate order by the Registry. The appeal was notified due to its 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 sets monetary limits for filing appeals. The circular specifies monetary limits for appeals before the Income Tax Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). The High Court disposed of the appeal accordingly.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? Assessee's Contentions: The assessee did not explicitly present arguments as the appeal was not pressed by the Revenue. However, the underlying reason for the appeal not being pressed is the low tax effect, as per the CBDT Circular No. 17/2019. This circular provides monetary limits for filing appeals, and if the tax effect falls below these limits, the Revenue is generally advised not to pursue the appeal. Revenue's Contentions: The Revenue stated that the appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019, dated August 8, 2019. The Revenue relied on the policy outlined in this circular, which establishes monetary thresholds for appeals before various judicial forums, including the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/568/2010 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 568 of 2010 ========================================================== COMMISSIONER OF INCOME TAX Versus M/S SOHAM BUILDERS ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR RK PATEL(1082) for the Opponent(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 Page 1 of 2

C/TAXAP/568/2010 ORDER DATED: 07/01/2022 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 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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