PRINCIPAL COMMISSIONER OF INCOME TAX-2 vs. NAYAN K THAKKAR

PDF · subscribers
TAXAP/629/2015HC GujaratGJHC24047915201531 July 2020Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH,HONOURABLE MR. JUSTICE J.B.PARDIWALA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat held that the Tax Appeal was not pressed by the appellant (Revenue) due to the low tax effect, in accordance with Circular No. 17/2019. This circular establishes monetary limits for appeals before various authorities, including the High Court (Rs. 1,00,00,000). The court disposed of the appeal accordingly. It reserved the liberty for the Revenue to revive the appeal in case of any difficulty. The principle here is that appeals with low tax effect, falling below the prescribed monetary limits in the CBDT circular, may not be pursued by the revenue.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-2 against Nayan K Thakkar. The appeal was listed for an appropriate order by the Registry. The appeal was notified due to its low tax effect. The High Court of Gujarat at Ahmedabad was to pass an order considering Circular No. 17/2019 dated 8th August 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, New Delhi. The circular outlines monetary limits for filing appeals. The appeal was ultimately disposed of in light of this circular and the low tax effect.

What were the issues?

1. Whether the appeal should be entertained given the low tax effect, in light of Circular No. 17/2019? (Question of procedure/policy) The Assessee (Revenue) argued that the appeal should not be pressed due to the low tax effect, referencing Circular No. 17/2019. The judgment does not record any specific arguments from the Revenue (Appellant) other than their initial filing of the appeal. The court's decision is based on the stated policy and the appellant's subsequent non-pressing of the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/629/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 629 of 2015 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-2 Versus NAYAN K THAKKAR ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA

Date : 31/07/2020

ORAL ORDER (PER : HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH) 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. Page 1 of 2

C/TAXAP/629/2015 ORDER 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 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. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) ALI ISTAYAK Page 2 of 2

Recent GST High Court judgments

Search GST case law →