COMMISSIONER OF INCOME TAX-I vs. GANDHIDHAM DEVELOPMENT AUTHORITY

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TAXAP/924/2011HC GujaratGJHC24045242201107 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the appeal should be disposed of in view of the low tax effect, as per Circular No. 17/2019. The reasoning is that the monetary limit for appeals before the High Court, as stipulated in the circular, has been considered. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Since the appeal has a low tax effect, it falls within the purview of the policy to not press such appeals. The operative direction is that the appeal is disposed of accordingly. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax-I (the Revenue) against Gandhidham Development Authority (the Assessee). 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 dispose of the appeal in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. The circular outlines monetary limits for filing appeals. The Revenue indicated that the appeal was not pressed due to the low tax effect, as per the aforementioned circular.

What were the issues?

1. Whether the appeal should be disposed of in view of the low tax effect as per Circular No. 17/2019? (Question of law) The Revenue's contention is that the appeal is not pressed due to the low tax effect, aligning with the policy outlined in Circular No. 17/2019. The circular provides monetary limits for appeals before various authorities, including the High Court. The Revenue relies on this circular to justify not pressing the appeal. The judgment does not record any specific arguments from the Assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/924/2011 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 924 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-I Versus GANDHIDHAM DEVELOPMENT AUTHORITY ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR PR NANAVATI(508) 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/924/2011 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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