COMMISSIONER OF INCOME TAX (EXEMPTIONS) vs. UDYOG BHARTI

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TAXAP/925/2017HC GujaratGJHC24057192201727 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the tax appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The court noted the revised monetary limits for appeals, including a limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal was disposed of accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the assessment year(s) involved are not recorded in the judgment. No issue was expressly left undecided.

What were the facts?

The Gujarat High Court was notified of Tax Appeal No. 925 of 2017, filed by the Commissioner of Income Tax (Exemptions) against Udyog Bharti. The appeal was listed for an appropriate order due to a low tax effect. The court was to consider Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which outlines 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). The appeal was disposed of in light of this circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect as per Circular No. 17/2019? (Question of law) The Revenue contended that the appeal was not pressed in view of the low tax effect, referencing Circular No. 17/2019. The assessee's arguments are not recorded in the judgment. The circular establishes monetary limits for appeals, with appeals below Rs. 1,00,00,000 before the High Court being subject to this policy. The court's decision hinges on whether the tax effect in this specific appeal falls below the threshold set by the circular, thereby making it not pressable.

AI-generated summary — verify with the full judgment below

C/TAXAP/925/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 925 of 2017 ========================================================== COMMISSIONER OF INCOME TAX (EXEMPTIONS) Versus UDYOG BHARTI ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 DARSHAN R PATEL(8486) 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/925/2017 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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