COMMISSIONER OF INCOME TAX(EXEMPTIONS) vs. EKLAVYA EDUCATION FOUNDATION

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TAXAP/657/2018HC GujaratGJHC24035880201827 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the appeal was not pressed by the appellant (Commissioner of Income Tax (Exemptions)) in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The Circular specifies monetary limits for appeals, with a limit of Rs. 1,00,00,000 for appeals before the High Court. The appeal was disposed of accordingly. The Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The ratio is that appeals with a low tax effect, below the prescribed monetary limit in the relevant CBDT circular, should not be pressed and can be disposed of.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax (Exemptions) against Eklavya Education Foundation. The appeal was listed for an appropriate order by the Registry due to a low tax effect. The appeal was to be disposed of in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. The Circular outlines monetary limits for filing appeals before various authorities. The appeal was not pressed by the appellant.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect as per Circular No. 17/2019? (Question of law) The assessee (Revenue) argued that the appeal was not pressed in view of the low tax effect and the policy reflected in Circular No. 17/2019. The judgment does not record any specific arguments from the assessee (Eklavya Education Foundation).

AI-generated summary — verify with the full judgment below

C/TAXAP/657/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 657 of 2018 ========================================================== COMMISSIONER OF INCOME TAX(EXEMPTIONS) Versus EKLAVYA EDUCATION FOUNDATION ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 DARSHAN R PATEL(8486) for the Opponent(s) No. 1 MR RK PATEL(1082) 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/657/2018 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) KUMAR ALOK Page 2 of 2

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