COMMISSIONER OF INCOME TAX - I vs. JAYANTILAL AMBALAL CHOKSI

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TAXAP/663/2014HC GujaratGJHC24044918201407 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 Tax Appeal is not pressed by the Revenue due to the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The circular outlines monetary limits for appeals at various levels, including before the High Court. Since the tax effect of the present appeal was below the prescribed limit for High Court appeals, the Revenue chose not to pursue it. Consequently, the appeal was disposed of in accordance with this policy. The Court also reserved the liberty for the Revenue to revive the tax appeal if any difficulty arises. No specific finding was made on the merits of the original dispute.

What were the facts?

The Commissioner of Income Tax - I (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Jayantilal Ambalal Choksi (the assessee). The appeal was notified for passing an appropriate order due to its low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular provides monetary limits for filing appeals. The High Court noted the monetary limits for appeals before the Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000). The appeal was disposed of accordingly, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in light of CBDT Circular No. 17/2019? Assessee's Contention: The assessee did not explicitly record any arguments. However, the appeal was not pressed by the Revenue due to the low tax effect, implying an understanding or acceptance of the circular's applicability. Revenue's Contention: The Revenue stated that the appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019, dated 8th August, 2019. The circular establishes monetary limits for appeals, and the present appeal falls within these limits, making it not pressable.

AI-generated summary — verify with the full judgment below

C/TAXAP/663/2014 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 663 of 2014 ========================================================== COMMISSIONER OF INCOME TAX - I Versus JAYANTILAL AMBALAL CHOKSI ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) 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 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/663/2014 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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