THE PRINCIPAL COMMISSIONER OF INCOME TAX vs. THE CO-OPERATIVE BANK OF RAJKOT LTD.,

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TAXAP/535/2015HC GujaratGJHC24047880201527 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 decided that the appeal is not pressed in view of the low tax effect, as per Circular No. 17/2019. The court noted that the circular establishes monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. Consequently, the appeal was disposed of in accordance with this circular. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The principle derived is that appeals below the prescribed monetary threshold in the relevant circular may not be pressed or entertained.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax against The Co-operative Bank of Rajkot Ltd. The appeal was notified for passing an appropriate order due to low tax effect. The High Court of Gujarat at Ahmedabad considered 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, New Delhi, which outlines 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 entertained given the low tax effect in light of Circular No. 17/2019? (Question of law) Assessee's Contention: The appeal is not pressed due to the low tax effect, as per Circular No. 17/2019. The circular sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Revenue's Contention: The revenue did not present any arguments against the assessee's position regarding the low tax effect and the applicability of the circular. The judgment does not record any specific arguments from the revenue.

AI-generated summary — verify with the full judgment below

C/TAXAP/535/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 535 of 2015 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX Versus THE CO-OPERATIVE BANK OF RAJKOT LTD., ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR TUSHAR P HEMANI(2790) for the Opponent(s) No. 1 MS VAIBHAVI K PARIKH(3238) 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. Page 1 of 2

C/TAXAP/535/2015 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 Monetray

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) PALAK Page 2 of 2

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