PR. COMMISSIONER OF INCOME TAX-3, AHMEDABAD vs. MOTIBHAI REVABHAI PRAJAPATI

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TAXAP/687/2016HC GujaratGJHC24051910201627 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 revenue due to the low tax effect, as per Circular No. 17/2019. The court acknowledged the new policy reflected in the circular, which sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. In view of this, the appeal was disposed of accordingly. The court also 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 No specific finding was made on the merits of the original tax dispute, as the appeal was withdrawn by the revenue based on the circular.

What were the facts?

The Gujarat High Court was considering a tax appeal filed by the Pr. Commissioner of Income Tax-3, Ahmedabad, against Motibhai Revabhai Prajapati. The appeal was listed for an appropriate order due to a low tax effect. The court noted that the appeal was to be disposed of in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals. The judgment does not specify the assessment year(s) or the amount in dispute, nor does it detail the procedural history prior to the High Court's consideration.

What were the issues?

1. Whether the tax appeal should be dismissed due to low tax effect in light of Circular No. 17/2019, which sets monetary limits for appeals before the High Court at Rs. 1,00,00,000. Assessee's Contention: The assessee (Motibhai Revabhai Prajapati) did not appear or present any arguments. The judgment does not record any contentions for the assessee. Revenue's Contention: The appellant (Pr. Commissioner of Income Tax-3, Ahmedabad) submitted that the tax appeal is not pressed in view of the low tax effect, citing Circular No. 17/2019. The revenue relied on the revised monetary limits stipulated in the circular for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/687/2016 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 687 of 2016 ========================================================== PR. COMMISSIONER OF INCOME TAX-3, AHMEDABAD Versus MOTIBHAI REVABHAI PRAJAPATI ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE UNSERVED(68) 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/687/2016 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) GIRISH Page 2 of 2

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