COMMISSIONER OF INCOME TAX AHMEDABAD III vs. PURIDEVI MAHENDRAKUMAR CHAUDHARY

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TAXAP/943/2013HC GujaratGJHC24043556201331 July 2020Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH,HONOURABLE MR. JUSTICE J.B.PARDIWALA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat disposed of the Tax Appeal as 'not pressed' in view of the low tax effect, aligning with Circular No. 17/2019. The circular establishes monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. The Court noted that if the revenue faced any difficulty, it reserved the liberty to revive the tax appeal. The specific tax effect or the substantive grounds of appeal were not adjudicated upon due to the appeal not being pressed.

What were the facts?

This is a Tax Appeal filed by the Commissioner of Income Tax, Ahmedabad III, against Puridevi Mahendrakumar Chaudhary. The appeal was listed for an order due to its low tax effect. The High Court of Gujarat at Ahmedabad considered Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular outlines monetary thresholds 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 present appeal was being considered in light of these revised limits.

What were the issues?

1. Whether the Tax Appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed. The judgment states the appeal is 'not pressed'. Revenue's Contention: The revenue, through its counsel, did not press the appeal. The decision to dispose of the appeal is based on the low tax effect and the policy outlined in Circular No. 17/2019.

AI-generated summary — verify with the full judgment below

C/TAXAP/943/2013 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 943 of 2013 ========================================================== COMMISSIONER OF INCOME TAX AHMEDABAD III Versus PURIDEVI MAHENDRAKUMAR CHAUDHARY ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR SN DIVATIA(1378) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA

Date : 31/07/2020

ORAL ORDER (PER : HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH) 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. Page 1 of 2

C/TAXAP/943/2013 ORDER 3. According to the new policy as reflected from the Circular referred to above, the table for monetary limits is as follows: 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. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) ALI ISTAYAK Page 2 of 2

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