COMMISSIONER OF INCOME TAX vs. J K SECURITIES PVT LTD

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TAXAP/881/2011HC GujaratGJHC24045220201130 January 2019Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE DR. JUSTICE A. P. THAKER2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the appeal is disposed of as not pressed. This decision is based on the admitted position that the tax effect involved is less than Rs. 50,00,000/-. The Court relied on Circular No. 3/2018, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. This circular stipulates that appeals with a tax effect not exceeding Rs. 50,00,000/- should not be filed before the High Court and has been made retrospectively applicable to pending appeals. Consequently, the learned senior standing counsel for the appellant (Revenue) did not press the appeal. The operative direction is that the appeal is disposed of as not pressed. The Court also noted that if there is any error in the computation of the tax effect or if the circular is not applicable for any reason, the appellant would be at liberty to seek revival of the appeal.

What were the facts?

This case involves an appeal filed by the Commissioner of Income Tax (the Revenue) against J.K. Securities Pvt. Ltd. (the assessee). The appeal is before the High Court of Gujarat at Ahmedabad. The specific assessment year(s) are not explicitly stated in the provided text. The order or action under challenge is the appeal itself, filed by the Revenue. The procedural history relevant here is that the appeal was filed and is now being heard. A key fact is that both parties admit that the tax effect involved in the appeal is less than Rs. 50,00,000/-.

What were the issues?

The primary issue before the High Court is whether the appeal filed by the Revenue should be entertained, given the admitted low tax effect. The Tribunal does not have to decide substantive questions of income tax law. The Court needs to decide: 1. Whether the appeal, with a tax effect below Rs. 50,00,000/-, should be dismissed in light of CBDT Circular No. 3/2018. The Revenue's contention, as presented by its counsel, is that it does not press the present appeal. This is based on CBDT Circular No. 3/2018, which mandates that no appeal with a tax effect not exceeding Rs. 50,00,000/- shall be filed before the High Court and is retrospectively applicable to pending appeals. The assessee's contention is not explicitly recorded, but their counsel is present, implying they are represented.

AI-generated summary — verify with the full judgment below

C/TAXAP/881/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 881 of 2011 ========================================================== COMMISSIONER OF INCOME TAX Versus J K SECURITIES PVT LTD ========================================================== Appearance: MR.VARUN K.PATEL(3802) for the APPELLANT MR TUSHAR P HEMANI(2790) for the RESPONDENT(s) No. 1 MS VAIBHAVI K PARIKH(3238) for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE DR.JUSTICE A. P. THAKER

Date : 30/01/2019

ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mr.Varun K. Patel, learned Senior Standing Counsel for the appellant and Mr. Tushar Hemani, learned advocate for the respondent. 2. It is an admitted position between the parties that the tax effect involved in this appeal is less than Rs.50,00,000/-. Under the circumstances, in the light of the Circular No.3/2018 dated 11th July, 2018 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes which provides that no appeal wherein the tax effect does not exceed the monetary limit of Rs.50,00,000/- shall be filed before the High Court and has also been made retrospectively applicable to pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. Page 1 of 2

C/TAXAP/881/2011 ORDER 3. The appeal is accordingly disposed of as not pressed in the light of the Circular dated 11th July, 2018. However, in case there is any error in the computation of the tax effect involved or if for any reason, the circular is not applicable, it would be open for the appellant to seek revival of the appeal. (HARSHA DEVANI, J) (A. P. THAKER, J) V.R. PANCHAL Page 2 of 2

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