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

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TAXAP/631/2015HC GujaratGJHC24047917201527 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 appeal was not pressed by the Revenue in view of the low tax effect, referencing Circular No. 17/2019. The circular establishes monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. Consequently, the appeal was disposed of in accordance with this policy. The court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute, as the appeal was withdrawn by the appellant.

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 order due to its low tax effect. The High Court of Gujarat at Ahmedabad was considering the appeal. The appeal was not pressed by the appellant due to the low tax effect, referencing 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 court noted the monetary limit for appeals before the High Court is Rs. 1,00,00,000.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, in light of Circular No. 17/2019? Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed. The judgment indicates the appeal was not pressed by the appellant (Revenue). Revenue's Contention: The Revenue did not press the appeal due to the low tax effect, as per Circular No. 17/2019. The circular sets monetary limits for appeals, and the current appeal falls below the threshold for High Court appeals (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/631/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 631 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 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. Page 1 of 2

C/TAXAP/631/2015 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 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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