COMMISSIONER OF INCOME TAX-II vs. LABH CONSTRUCTION & INDUSTRIESLTD

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TAXAP/1992/2008HC GujaratGJHC24041427200827 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 of Gujarat disposed of the tax appeal as not pressed. The decision was based on Circular No. 17/2019, which sets monetary limits for appeals. The appeal was not pressed by the Revenue in view of the low tax effect, aligning with the policy outlined in the circular. The court noted the monetary limit for appeals before the High Court is Rs. 1,00,00,000. The court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue regarding the merits of the ITAT's order was decided.

What were the facts?

The Commissioner of Income Tax-II (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against the order of the Income Tax Appellate Tribunal (ITAT) concerning Labh Construction & Industries Ltd. (Assessee). The appeal was notified for an appropriate order due to low tax effect. The Revenue decided not to press 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 a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

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's contention was that the appeal was not pressed due to the low tax effect, citing Circular No. 17/2019. The Assessee's contentions were not recorded in the judgment. The judgment does not record any specific arguments from the Assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/1992/2008 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1992 of 2008 ========================================================== COMMISSIONER OF INCOME TAX-II Versus LABH CONSTRUCTION & INDUSTRIESLTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) 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/1992/2008 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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