PRINCIPAL COMMISSIONER OF INCOME TAX vs. GONDAL NAGRIK SAHAKARI BANK LTD
What did the High Court hold?
The High Court held that the tax appeal was not pressed by the Revenue in view of the low tax effect, aligning with Circular No. 17/2019. The Court noted the revised monetary limits for appeals before the High Court, which is Rs. 1,00,00,000. 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 principle derived is that appeals with a low tax effect, below the prescribed monetary limits in departmental circulars, can be withdrawn or not pressed, leading to their disposal.
What were the facts?
The Principal Commissioner of Income Tax (Revenue) filed several tax appeals before the High Court of Gujarat at Ahmedabad against The Co-operative Bank of Rajkot Ltd. (Assessee). These appeals were listed for an appropriate order due to low tax effect. The Revenue sought to dispose of these appeals in accordance with Circular No. 17/2019, dated August 8, 2019, issued by the Central Board Direct Taxes. This circular outlines revised monetary limits for filing appeals by the department. The appeals were specifically notified for this purpose.
What were the issues?
1. Whether the tax appeal should be disposed of in light of Circular No. 17/2019, dated August 8, 2019, concerning low tax effect? (Question of law) The Revenue argued that the appeal was not pressed due to the low tax effect, as per the aforementioned circular. The circular establishes monetary limits for appeals before various judicial forums, including the High Court (Rs. 1,00,00,000). The Revenue relied on this circular to justify the disposal of the appeal. The judgment does not record any specific arguments from the Assessee regarding this issue.
AI-generated summary — verify with the full judgment below
C/TAXAP/534/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 534 of 2015 With R/TAX APPEAL NO. 612 of 2016 With R/TAX APPEAL NO. 613 of 2016 With R/TAX APPEAL NO. 614 of 2016 With R/TAX APPEAL NO. 615 of 2016 With R/TAX APPEAL NO. 616 of 2016 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX Versus THE CO-OPERATIVE BANK OF RAJKOT LTD., ========================================================== 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. Page 1 of 2
C/TAXAP/534/2015 ORDER 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: Sr.No. Appeals/SLPs in Income-tax matters Monetray
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) PALAK Page 2 of 2
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