PRINCIPAL COMMISSIONER OF INCOMET TAX-1 vs. HASMUKH N. VORA (HUF)

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TAXAP/545/2017HC GujaratGJHC24057002201727 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 appeals were not pressed by the Revenue due to the low tax effect, in accordance with Circular No. 17/2019. The circular establishes monetary limits for appeals before various judicial forums, including the High Court (Rs. 1,00,00,000). Since the present appeals fell under the category of low tax effect as per the circular, they were disposed of accordingly. The court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute.

What were the facts?

The Principal Commissioner of Income Tax-I filed two tax appeals (R/TAX APPEAL NO. 290 of 2016 and R/TAX APPEAL NO. 545 of 2017) against Hasmukh N Vora (HUF). The appeals were listed for an order due to low tax effect. The Gujarat High Court noted that the appeals were not pressed by the Revenue in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The court referred to the monetary limit for appeals before the High Court, which is Rs. 1,00,00,000.

What were the issues?

1. Whether the appeal should be dismissed on the grounds of low tax effect as per Circular No. 17/2019? (Question of law and fact) Assessee's Contention: The assessee did not present any arguments as the appeal was not pressed by the Revenue. The judgment does not record any specific arguments made by the assessee. Revenue's Contention: The Revenue stated that the appeal is not pressed in view of the low tax effect, citing Circular No. 17/2019, dated August 8, 2019. The Revenue relied on the policy outlined in this circular regarding monetary limits for appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/290/2016 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 290 of 2016 With R/TAX APPEAL NO. 545 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-I Versus HASMUKH N VORA (HUF) ========================================================== 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. Page 1 of 2

C/TAXAP/290/2016 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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