PRINCIPAL COMMISSIONER OF INCOME TAX-2 vs. PRANAY BHARATKUMAR SHAH

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TAXAP/778/2017HC GujaratGJHC24057102201727 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 decided to dispose of the tax appeal. The reasoning was based on the Revenue's decision not to press the appeal due to its low tax effect, as per Circular No. 17/2019. This circular establishes monetary limits for appeals before various authorities, including the High Court, where the limit is Rs. 1,00,00,000. The court noted that the appeal was being disposed of in accordance with this circular. The court also 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?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-2 (the Revenue) against Pranay Bharatkumar Shah (the assessee). The appeal was notified for an order due to its low tax effect. The Revenue chose not to press the appeal, citing 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 specific amount in dispute is not recorded in the judgment. The High Court of Gujarat at Ahmedabad was hearing the appeal.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in light of Circular No. 17/2019? The Revenue argued that the appeal is not pressed in view of the low tax effect, referencing Circular No. 17/2019. The assessee's contentions are not recorded in the judgment. The judgment does not explicitly state any specific legal or factual questions that the Tribunal had to decide beyond the procedural aspect of whether to proceed with the appeal given the circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/778/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 778 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-2 Versus PRANAY BHARATKUMAR SHAH ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE SERVED(64) 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/778/2017 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) KUMAR ALOK Page 2 of 2

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