THE PRINCIPAL COMMISSIONER OF INCOME TAX 5 vs. SHAILESH R. DAXAMI

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TAXAP/851/2017HC GujaratGJHC24057143201707 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat at Ahmedabad held that the appeal is not pressed by the Revenue due to low tax effect, in accordance with CBDT Circular No. 17/2019. The circular establishes a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal was disposed of based on this policy. The Court reserved liberty for the Revenue to revive the tax appeal if any difficulty arises. No specific finding was made on the merits of the original dispute, as the appeal was withdrawn by the Revenue.

What were the facts?

The Principal Commissioner of Income Tax 5 (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Shailesh R. Daxami (Assessee). 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 sets monetary limits for filing appeals. The circular provides a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The appeal was disposed of based on this circular, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in accordance with CBDT Circular No. 17/2019? (Question of law) Contentions: Assessee: No specific arguments recorded. Revenue: The Revenue contended that the appeal is not pressed in view of the low tax effect, citing CBDT Circular No. 17/2019, which sets monetary limits for filing appeals before the High Court at Rs. 1,00,00,000. The Revenue relied on the policy reflected in this circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/851/2017 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 851 of 2017 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX 5 Versus SHAILESH R. DAXAMI ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

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 8 th 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 8 th 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/851/2017 ORDER DATED: 07/01/2022 Sr. No. Appeals/SLPs in Income-tax 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) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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