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

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TAXAP/832/2014HC GujaratGJHC24045063201427 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 held that the Tax Appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The court disposed of the appeal accordingly. The reasoning is based on the revised monetary limits for appeals stipulated in the circular, which made it unviable for the Revenue to pursue the appeal. The operative direction is the disposal of the appeal. The court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the appeal was disposed of based on the stated reason.

What were the facts?

The Gujarat High Court was presented with a Tax Appeal filed by the Commissioner of Income Tax Central II against Safal Reality Pvt. Ltd. The appeal was listed for an order due to a low tax effect. The court noted that the appeal was being disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals. The court also mentioned the specific monetary limits for appeals before the Income Tax Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,000), and Supreme Court (Rs. 2,00,000). The appeal was disposed of based on these revised guidelines.

What were the issues?

1. Whether the Tax Appeal should be dismissed on the grounds of low tax effect as per Circular No. 17/2019? The Revenue argued that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The Assessee's arguments are not recorded in the judgment. The issue hinges on the applicability and interpretation of the aforementioned circular in deciding the fate of the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/832/2014 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 832 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/832/2014 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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