PR. COMMISSIONER OF INCOME TAX-3, AHMEDABAD vs. MOTIBHAI REVABHAI PRAJAPATI

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TAXAP/685/2016HC GujaratGJHC24051908201627 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court noted that the Tax Appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The Circular establishes monetary limits for appeals, with a limit of Rs. 1,00,00,000 for appeals before the High Court. Since the appeal was not pressed and fell within the scope of the new policy regarding low tax effect, the Court disposed of the appeal accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original tax dispute was made.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-3, Ahmedabad (the Revenue) against Motibhai Revabhai Prajapati (the assessee). 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 Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. The Circular outlines monetary limits for filing appeals. The appeal was not pressed by the Revenue.

What were the issues?

The primary issue before the High Court was whether the Tax Appeal should be entertained given the low tax effect, as per the prevailing policy of the Revenue. The Revenue, through its counsel, indicated that the appeal was not pressed. The judgment does not record any specific arguments from the assessee's side. The relevant provision implicitly considered is the policy outlined in Circular No. 17/2019, which sets monetary limits for appeals before various authorities, including the High Court, to streamline litigation and focus on substantial tax disputes.

AI-generated summary — verify with the full judgment below

C/TAXAP/685/2016 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 685 of 2016 ========================================================== PR. COMMISSIONER OF INCOME TAX-3, AHMEDABAD Versus MOTIBHAI REVABHAI PRAJAPATI ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE UNSERVED(68) 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/685/2016 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) GIRISH Page 2 of 2

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