THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) vs. ASHOK GONDHIYA MEMORIAL TRUST

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TAXAP/872/2015HC GujaratGJHC24048022201531 July 2020Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH,HONOURABLE MR. JUSTICE J.B.PARDIWALA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court disposed of the Tax Appeal as not pressed. The Court explicitly noted that the appeal was being disposed of in view of the low tax effect, referencing 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. The Court's decision to dispose of the appeal is based on this policy. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific findings on the merits of the original assessment or the lower appellate authority's order were made, as the appeal was not pressed.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax (Exemptions) against Ashok Gondhiya Memorial Trust. The appeal was listed for an appropriate order by the Registry. The appeal was notified due to its low tax effect. The Court was to consider 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, New Delhi, in disposing of the appeal. The circular outlines monetary limits for filing appeals before various authorities.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, in light of Circular No. 17/2019? Assessee's Contention: The appeal is not pressed due to the low tax effect, as per Circular No. 17/2019. The assessee relies on this circular to argue for the disposal of the appeal. Revenue's Contention: The judgment does not record any specific contention from the revenue regarding the merits of the appeal. However, the appeal was filed by the revenue, indicating their initial disagreement with a lower authority's decision. The revenue's participation in the hearing and the mention of the circular suggest a procedural consideration rather than a contest on the substantive issues.

AI-generated summary — verify with the full judgment below

C/TAXAP/872/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 872 of 2015 ========================================================== THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) Versus ASHOK GONDHIYA MEMORIAL TRUST ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR HITESH V PATEL(6090) for the Opponent(s) No. 1 RULE SERVED(64) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA

Date : 31/07/2020

ORAL ORDER (PER : HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH) 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 Page 1 of 2

C/TAXAP/872/2015 ORDER 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: 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. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) ALI ISTAYAK Page 2 of 2

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