PRINCIPAL COMMISSIONER OF INCOME TAX CENTRAL SURAT vs. NARAYAN REALITY LIMITED

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TAXAP/653/2018HC GujaratGJHC24035687201807 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat held that the appeal is not pressed by the Revenue due to the low tax effect, in line with Circular No. 17/2019. The Court noted the monetary limits specified in the circular, which indicate that appeals with a tax effect below Rs. 1,00,00,000 before the High Court are generally not pursued. Consequently, the appeal was disposed of on this basis. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No decision was made on the merits of the case.

What were the facts?

The appeal, C/TAXAP/653/2018, was filed by the Principal Commissioner of Income Tax, Central Surat, against Narayan Reality Limited. The appeal was listed for passing an appropriate order by the High Court of Gujarat at Ahmedabad. The primary reason for the appeal being notified was its low tax effect. The appeal was to be disposed of in accordance with Circular No. 17/2019, dated 8th August, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, considering the CBDT's 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 from the assessee's side. Revenue's Contention: The Revenue submitted that the appeal is not pressed in view of the low tax effect, referencing Circular No. 17/2019. This circular outlines monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/653/2018 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 653 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX CENTRAL SURAT Versus NARAYAN REALITY LIMITED ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 RULE SERVED(64) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

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 8 th 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 8 th 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/653/2018 ORDER DATED: 07/01/2022 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. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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