COMMISSIONER OF INCOME TAX CENTRAL II vs. SAFAL REALITY PVT. LTD.

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TAXAP/831/2014HC GujaratGJHC24045062201427 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 of Gujarat at Ahmedabad held that the Tax Appeal is not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The Court noted the revised monetary limits for appeals, specifically Rs. 1,00,000 for appeals before the High Court. Consequently, the appeal was disposed of accordingly. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the original assessment year(s) were not recorded in the judgment.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax Central II (the Revenue) against Safal Reality Pvt. Ltd. (the Assessee). The appeal was filed before the High Court of Gujarat at Ahmedabad. The appeal was notified for an appropriate order due to 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, which revised monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,000 for appeals before the High Court.

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) Assessee's Contention: The Assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. However, the context implies the Assessee would benefit from the dismissal based on the low tax effect. Revenue's Contention: The Revenue argued that the appeal should be disposed of in view of the low tax effect, citing Circular No. 17/2019, dated August 8, 2019. The Revenue stated that the appeal is not pressed on this ground. The circular establishes monetary limits for appeals, with Rs. 1,00,000 being the limit for High Court appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/831/2014 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 831 of 2014 ========================================================== COMMISSIONER OF INCOME TAX CENTRAL II Versus SAFAL REALITY PVT. LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) 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 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/831/2014 ORDER Sr. No. Appeals/SLPs in Income­tax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,000 3 Before Supreme Court 2,00,000 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) CHANDRESH Page 2 of 2

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