COMMISSIONER OF INCOME TAX-I vs. TEXTILE COOPERATIVE BANK OF SURAT LIMITED

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TAXAP/841/2009HC GujaratGJHC24040921200920 October 2021Bench: HONOURABLE THE CHIEF JUSTICE MS. JUSTICE SONIA GOKANI,HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court decided that the appeal was not pressed in view of the low tax effect, as per Circular No. 17/2019. The monetary limit for appeals before the High Court is Rs. 1,00,00,000/-. Since the penalty involved was Rs. 34,40,000/-, which is below the stipulated limit, the appeal was disposed of accordingly. The court reserved the liberty for the Revenue to revive the tax appeal if any difficulty arose. The ratio is that appeals below the monetary threshold specified in CBDT circulars for the respective appellate forums will not be pressed by the Revenue.

What were the facts?

The appeal was filed by the Commissioner of Income Tax-I against Textile Cooperative Bank of Surat Limited. The appeal concerns a low tax effect. The monetary limit for appeals before the High Court, as per Circular No. 17/2019 dated 8th August, 2019, is Rs. 1,00,00,000/-. The amount of penalty involved in the present appeal is Rs. 34,40,000/-. The High Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the issues?

1. Whether the appeal should be entertained by the High Court given the low tax effect, in light of 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 judgment does not record any arguments from the assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/841/2009 ORDER DATED: 20/10/2021 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 841 of 2009 ========================================================== COMMISSIONER OF INCOME TAX-I Versus TEXTILE COOPERATIVE BANK OF SURAT LIMITED ========================================================== Appearance: MR. NIKUNT RAVAL for MRS KALPANAK RAVAL(1046) for the Appellant(s) No. 1 MR BANDISH SOPARKAR for MRS SWATI SOPARKAR(870) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MS. JUSTICE SONIA GOKANI and HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK Date : 20/10/2021 ORAL ORDER (PER : HONOURABLE MS. JUSTICE SONIA GOKANI) 1. The captioned appeal concerns 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 Page 1 of 2

C/TAXAP/841/2009 ORDER DATED: 20/10/2021 Circular referred to above, the table for monetary limits is as follows: Sr. No. Appeals/SLPs in Income tax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal Rs. 50,00,000/- 2 Before High Court Rs. 1,00,00,000/- 3 Before Supreme Court Rs. 2,00,00,000/- 4. Since the amount of penalty involved in the present appeal is Rs. 34,40,000/-, in view of the aforesaid, the appeal is disposed of accordingly. 5. In case of any difficulty, we reserve the liberty for the Revenue to revive the tax appeal. (SONIA GOKANI, J) (HEMANT M. PRACHCHHAK,J) Bhoomi Page 2 of 2

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