PRINCIPAL COMMISSIONER OF INCOME TAX, vs. RIJIYA BROTHERS,

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TAXAP/729/2017HC GujaratGJHC24057078201727 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 at Ahmedabad disposed of the Tax Appeal. The decision was based on the Revenue not pressing the appeal due to a low tax effect, in accordance with Circular No. 17/2019. This circular establishes monetary limits for appeals, with Rs. 1,00,00,000 being the threshold for appeals before the High Court. The Court noted that the appeal was not pressed in light of this policy. The Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific findings on the merits of the case were made, as the appeal was not pressed.

What were the facts?

The Principal Commissioner of Income Tax (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad. The appeal was against an order or action by an unnamed authority concerning the assessee, Rijiya Brothers. The specific assessment year(s) and the amount in dispute are not recorded in the judgment. The appeal was notified for an appropriate order due to low tax effect, referencing Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. The appeal was not pressed by the Revenue.

What were the issues?

1. Whether the Tax Appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? Assessee's Contention: The assessee's specific contentions are not recorded in the judgment. However, the appeal was not pressed by the Revenue, implying the assessee would likely support its dismissal. Revenue's Contention: The Revenue did not press the appeal in view of the low tax effect, citing Circular No. 17/2019, which sets monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/729/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 729 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX, Versus RIJIYA BROTHERS, ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE NOT RECD BACK(63) 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/729/2017 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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