PR. COMMISSIONER OF INCOME TAX-3, AHMEDABAD vs. KALPESHBHAI BHAGWANBHAI PRAJAPATI

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TAXAP/684/2016HC GujaratGJHC24051907201612 February 2019Bench: 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 it is an admitted position between the parties that the tax effect involved in the appeal is less than Rs. 50,00,000/-. In light of 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 stipulates that no appeal where the tax effect does not exceed Rs. 50,00,000/- shall be filed before the High Court and has retrospective applicability to pending appeals, the learned senior standing counsel for the appellant (Revenue) did not press the appeal. Consequently, the appeal was disposed of as not pressed. The court also noted that if there is any error in the computation of the tax effect or if the circular is not applicable for any reason, the appellant would be at liberty to seek revival of the appeal. No specific finding was given on the merits of the original dispute.

What were the facts?

This is an appeal filed by the Pr. Commissioner of Income Tax-3, Ahmedabad (the Revenue) against Kalpeshbhai Bhagwanbhai Prajapati (the assessee). The appeal challenges an order or action that is not specified in the provided text. The assessment year(s) are also not mentioned. The procedural history is that the appeal was filed before the High Court of Gujarat. During the hearing, it was admitted by both parties that the tax effect involved in the appeal is less than Rs. 50,00,000/-. The Revenue's counsel stated that they do not press the appeal in light of a CBDT Circular.

What were the issues?

1. Whether the present appeal, where the tax effect is less than Rs. 50,00,000/-, is maintainable before the High Court, considering the CBDT Circular No. 3/2018 dated 11th July, 2018. The Revenue's contention, as presented by Mrs. Mauna Bhatt, learned Senior Standing Counsel, is that the appeal is not pressed due to the tax effect being below the monetary limit stipulated in Circular No. 3/2018, which is also retrospectively applicable to pending appeals. The assessee's contention, as presented by Mr. S. N. Divatia, learned advocate, is not recorded in the judgment. The judgment does not record any specific arguments from the assessee's side regarding the merits of the appeal or the applicability of the circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/684/2016 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 684 of 2016 ========================================================== PR. COMMISSIONER OF INCOME TAX-3, AHMEDABAD Versus KALPESHBHAI BHAGWANBHAI PRAJAPATI ========================================================== Appearance: MRS MAUNA M BHATT(174) for the APPELLANT(s) No. 1 MR SN DIVATIA(1378) for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE DR.JUSTICE A. P. THAKER

Date : 12/02/2019

ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mrs. Mauna Bhatt, learned Senior Standing Counsel for the appellant and Mr. S. N. Divatia, 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 senior standing counsel for the appellant does not press the present appeal. Page 1 of 2

C/TAXAP/684/2016 ORDER 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) Vijay Page 2 of 2

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