COMMISSIONER OF INCOME TAX-I vs. M/S SHREENATHJI CONSTRUCTION

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TAXAP/888/2011HC GujaratGJHC24045225201101 October 2019Bench: HONOURABLE MS. JUSTICE HARSHA DEVANI,HONOURABLE MS. JUSTICE SANGEETA K. VISHEN2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal held that the appeal is disposed of as not pressed. This decision was based on the submission by the Revenue's counsel that the tax effect involved was less than Rs. 1,00,00,000/- and the applicability of CBDT Circular No. 17 of 2019, dated 08.08.2019. This circular mandates that appeals with a tax effect below Rs. 1,00,00,000/- should not be filed before the High Court and is applicable retrospectively to pending appeals. The reasoning is that the Revenue itself, citing its own circular and the low tax effect, chose not to pursue the appeal. The ratio decidendi is that an appeal can be withdrawn or not pressed by the appellant if it falls below the monetary limits prescribed by the relevant circulars, even if it is pending before the High Court. 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 can seek revival of the appeal.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax-I (the Revenue) against M/s Shreenathji Construction (the assessee). The appeal challenges an order or action that is not specified in the provided text. The assessment year(s) are also not mentioned. The procedural history indicates that the appeal was heard by the High Court of Gujarat. The Revenue's counsel stated that the tax effect involved in the appeal was less than Rs. 1,00,00,000/-. This statement was made in light of Circular No. 17 of 2019, dated 08.08.2019, issued by the CBDT.

What were the issues?

1. Whether the present appeal, with a tax effect below Rs. 1,00,00,000/-, is maintainable before the High Court in light of CBDT Circular No. 17 of 2019. The Revenue, through its learned senior standing counsel, argued that the tax effect in the appeal is less than Rs. 1,00,00,000/-. Relying on Circular No. 17 of 2019, dated 08.08.2019, which stipulates that no appeal with a tax effect not exceeding Rs. 1,00,00,000/- shall be filed before the High Court and that this circular is retrospectively applicable to pending appeals, the Revenue stated that it does not press the present appeal. The judgment records no argument for the assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/888/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 888 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-I Versus M/S SHREENATHJI CONSTRUCTION ========================================================== Appearance: MR.VARUN K.PATEL(3802) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE MS. JUSTICE SANGEETA K. VISHEN

Date : 01/10/2019 ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mr.Varun K. Patel, learned senior standing counsel for the appellant and Mr.B.S. Soparkar, learned advocate for the respondent. 2. Mr. Varun K. Patel, learned senior standing counsel for the appellant, has stated that the tax effect involved in this appeal is less than Rs.1,00,00,000/-. Under the circumstances, in the light of the Circular No.17 of 2019 dated 08.08.2019 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.1,00,00,000/- shall be filed before the High Court and which has also been made retrospectively applicable to Page 1 of 2

C/TAXAP/888/2011 ORDER pending appeals, the learned senior standing counsel for the appellant does not press the present appeal. 3. The appeal is, accordingly, disposed of as not pressed in light of the Circular dated 08.08.2019. 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) (SANGEETA K. VISHEN,J) RAVI P. PATEL Page 2 of 2

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