COMMISSIONER OF INCOME TAX vs. M/S J B BROTHERS

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TAXAP/999/2011HC GujaratGJHC24045280201127 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 is not pressed by the appellant (Revenue) in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The circular establishes revised monetary limits for appeals, with a limit of Rs. 1,00,00,000 for appeals before the High Court. The court disposed of the appeal accordingly. The reasoning is based on the new policy introduced by the CBDT to streamline litigation and focus on cases with substantial tax implications. The ratio decidendi is that appeals falling below the stipulated monetary threshold, as per the relevant circular, are to be withdrawn or not pressed. The operative direction is the disposal of the appeal. The court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

The appeal, C/TAXAP/999/2011, was filed by the Commissioner of Income Tax (Revenue) against M/s J B Brothers (Assessee). The High Court of Gujarat at Ahmedabad was notified of the appeal for the purpose of passing an appropriate order. The appeal was listed 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 Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. The circular outlines revised monetary limits for filing appeals.

What were the issues?

1. Whether the appeal should be dismissed due to a low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's contention: The appeal is not pressed in view of the low tax effect, referencing Circular No. 17/2019. The assessee relies on the policy outlined in the circular which specifies monetary limits for appeals before various authorities, including the High Court. Revenue's contention: The revenue has not recorded any specific contention against the dismissal of the appeal on the grounds of low tax effect. However, the appeal was filed by the revenue, indicating an initial intent to pursue the matter. The court's order suggests the revenue may revive the appeal if difficulty arises.

AI-generated summary — verify with the full judgment below

C/TAXAP/999/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 999 of 2011 ========================================================== COMMISSIONER OF INCOME TAX Versus M/S J B BROTHERS ========================================================== Appearance: MRS MAUNA M BHATT(174) 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 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/999/2011 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) aruna Page 2 of 2

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