THE PRINCIPAL COMMISSIONER OF INCOME TAX 5 vs. MAGANBHAI HARJIBHAI BHAKHAR

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TAXAP/634/2017HC GujaratGJHC24057046201727 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 of Gujarat held that the appeal is not pressed and is disposed of in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The Court noted the new policy reflected in the circular, which sets monetary limits for appeals at various levels, including Rs. 1,00,00,000 for appeals before the High Court. The reasoning is that the Revenue has chosen not to pursue the appeal due to the low tax effect, aligning with the CBDT's directive. The ratio decidendi is that appeals falling below the prescribed monetary limits, as per the relevant circular, may be withdrawn or not pressed by the Revenue. The operative direction is that the appeal is disposed of accordingly. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax (Revenue) against Maganbhai Harjibhai Bhakhar (assessee). The appeal was filed before the High Court of Gujarat at Ahmedabad. The appeal was notified for an order due to a low tax effect. The Revenue indicated that the appeal was not pressed 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 establishes a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

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) Assessee's contention: The assessee did not present any arguments as the appeal was not pressed by the Revenue. The judgment does not record any specific arguments made by the assessee. Revenue's contention: The Revenue argued that the appeal should not be pressed and disposed of in view of the low tax effect, citing Circular No. 17/2019 dated August 8, 2019. This circular provides revised monetary limits for filing appeals, and the current appeal falls below the threshold for High Court appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/634/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 634 of 2017 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX 5 Versus MAGANBHAI HARJIBHAI BHAKHAR ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) for the Opponent(s) No. 1 RULE UNSERVED(68) 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. 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/634/2017 ORDER Sr. No. Appeals/SLPs in Incometax 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) (BHARGAV D. KARIA, J) GIRISH Page 2 of 2

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