DIRECTOR OF INCOME TAX (EXEMPTION) vs. AHMEDABAD URBAN DEVELOPMENT AUTHORITY

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TAXAP/913/2013HC GujaratGJHC24043551201307 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 held that the appeal was not pressed by the appellant (Revenue) in view of the low tax effect, as per Circular No. 17/2019. The court noted the monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. Since the appeal was not pressed, it was disposed of accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No decision was made on the substantive issues of the appeal.

What were the facts?

The appeal was filed by the Director of Income Tax (Exemption) against Ahmedabad Urban Development Authority. The case was listed for passing an appropriate order by the High Court of Gujarat. The appeal was notified due to its low tax effect. The court considered Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which provides monetary limits for filing appeals. The appeal was not pressed by the appellant in light of this circular and the established monetary limits for appeals before the High Court.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's contentions: The assessee (Revenue) argued that the appeal is not pressed due to the low tax effect, referencing Circular No. 17/2019. This circular sets monetary limits for appeals, and the current appeal falls below the threshold for filing before the High Court. Revenue's contentions: No specific contentions were recorded for the Revenue regarding the merits of the appeal. Their stance was based on the procedural aspect of withdrawing the appeal due to the low tax effect as per the CBDT circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/913/2013 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 913 of 2013 ========================================================== DIRECTOR OF INCOME TAX (EXEMPTION) Versus AHMEDABAD URBAN DEVELOPMENT AUTHORITY ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) 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/913/2013 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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