COMMISSIONER OF INCOME TAX RAJKOT III vs. GOKALBHAI MOHANBHAI AJANI

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TAXAP/648/2014HC GujaratGJHC24044914201427 November 2018Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE DR. JUSTICE A. P. THAKER2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that since the tax effect involved in the appeal was admitted to be less than Rs. 50,00,000/-, and in light of Circular No. 3/2018 which mandates that no appeal with such a tax effect should be filed before the High Court and is retrospectively applicable, the present appeal would not be pressed by the appellant. The appeal was accordingly disposed of as not pressed. The Court also noted that if there was any error in the computation of the tax effect or if the circular was not applicable for any reason, the appellant would be at liberty to seek revival of the appeal. No specific finding on the merits of the original assessment or the tax dispute was made.

What were the facts?

This is a Tax Appeal filed by the Commissioner of Income Tax, Rajkot III, against Gokalbhai Mohanbhai Ajani. The appeal pertains to assessment years not specified in the judgment. The order or action under challenge is not detailed, nor is the authority that passed it. The amount in dispute is also not explicitly stated, but the tax effect involved in the appeal is admitted by both parties to be less than Rs. 50,00,000/-. The procedural history is that the appeal was filed before the High Court of Gujarat at Ahmedabad.

What were the issues?

The Tribunal had to decide whether the appeal should be entertained given the tax effect. The appellant, the Commissioner of Income Tax, argued that the appeal should be disposed of as not pressed. This contention was based on Circular No. 3/2018 dated 11th July, 2018, issued by the CBDT, which stipulates that no appeal with a tax effect not exceeding Rs. 50,00,000/- should be filed before the High Court and that this circular is retrospectively applicable to pending appeals. The respondent's arguments are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/648/2014 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 648 of 2014 ========================================================== COMMISSIONER OF INCOME TAX RAJKOT III Versus GOKALBHAI MOHANBHAI AJANI ========================================================== Appearance: MRS MAUNA M BHATT(174) for the APPELLANT(s) No. 1 MR B S SOPARKAR(6851) for the RESPONDENT(s) No. 1.1 UNSERVED EXPIRED (R)(69) for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE DR.JUSTICE A. P. THAKER

Date : 27/11/2018

ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mrs. Mauna Bhatt, learned senior standing counsel for the appellant and Mr. B. S. Soparkar, learned advocate for the respondent. 2. It is an admitted position between the parties that the tax effect involved in this appeal is less than Rs.50,00,000/-. Under the circumstances, in the light of the Circular No.3/2018 dated 11th July, 2018 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes which provides that no appeal wherein the tax effect does not exceed the monetary limit of Rs.50,00,000/- shall be filed before the High Court and has also been made retrospectively applicable to pending appeals, the learned Page 1 of 2

C/TAXAP/648/2014 ORDER senior standing counsel for the appellant does not press the present appeal. 3. The appeal is accordingly disposed of as not pressed in the light of the Circular dated 11th July, 2018. However, in case there is any error in the computation of the tax effect involved or if for any reason, the circular is not applicable, it would be open for the appellant to seek revival of the appeal. (HARSHA DEVANI, J) (A. P. THAKER, J) Z.G. SHAIKH Page 2 of 2

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