COMMISSIONER OF INCOME TAX (TDS) vs. VISHAL ENTERPRISE

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TAXAP/914/2017HC GujaratGJHC24057188201727 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the appeal is not pressed by the Revenue due to the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The circular establishes revised monetary limits for appeals, with appeals before the High Court having a monetary limit of Rs. 1,00,00,000. The court noted that the appeal was being disposed of in accordance with this circular. The Revenue was granted liberty to revive the tax appeal in case of any difficulty. The ratio decidendi is that appeals with a tax effect below the prescribed monetary limits, as per CBDT circulars, are to be withdrawn or not pressed, leading to their disposal without a decision on merits.

What were the facts?

The Gujarat High Court was considering a Tax Appeal filed by the Commissioner of Income Tax (TDS) against Vishal Enterprise. The appeal was listed for an appropriate order. The Registry had notified the appeal due to a low tax effect. The court was to dispose of the appeal in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes, which revised monetary limits for filing appeals. The circular specifies monetary limits for appeals before the Income Tax Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000).

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in light of Circular No. 17/2019? (Question of law) The Revenue (Appellant) argued that the appeal is not pressed in view of the low tax effect, citing Circular No. 17/2019. The Assessee (Opponent) did not present any arguments as recorded in the judgment. The judgment does not explicitly state the specific grounds of appeal or the amount in dispute, but the decision hinges on the applicability of the aforementioned circular which sets monetary limits for appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/914/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 914 of 2017 ========================================================== COMMISSIONER OF INCOME TAX (TDS) Versus VISHAL ENTERPRISE ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR. APURVA N MEHTA(7202) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA

Date : 27/01/2020

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 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 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/914/2017 ORDER Sr. No. Appeals/SLPs in Incometax 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) (BHARGAV D. KARIA, J) KUMAR ALOK Page 2 of 2

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