COMMISSIONER OF INCOME TAX-I, vs. DILIP R PARIKH

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TAXAP/934/2008HC GujaratGJHC24041257200810 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 appeal should be disposed of in accordance with Circular No. 17/2019 due to the low tax effect. 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. Since the appeal was not pressed by the Revenue based on this circular, the Court disposed of the appeal accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original dispute was made, as the appeal was decided on procedural grounds related to the tax effect and policy.

What were the facts?

The Commissioner of Income Tax-I (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad. The appeal was against an order passed by an Income Tax Appellate Tribunal (though not explicitly stated, this is the usual procedural path). The appeal was notified for an appropriate order due to a low tax effect. The Revenue, through its counsel, stated that the appeal was not pressed in view of the low tax effect, referencing 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 Court noted the monetary limit for appeals before the High Court as Rs. 1,00,00,000.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of procedure/policy). Assessee's Contentions: The assessee did not present any arguments as the appeal was not pressed by the Revenue. The judgment does not record any contentions from the assessee. Revenue's Contentions: The Revenue contended that the appeal should be disposed of without pressing it, citing the low tax effect and the guidelines provided in Circular No. 17/2019. This circular establishes revised monetary limits for filing appeals before various authorities, including the High Court. The Revenue relied on this circular to justify not pursuing the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/934/2008 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 934 of 2008 ========================================================== COMMISSIONER OF INCOME TAX-I, Versus DILIP R PARIKH ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MRS SWATI SOPARKAR(870) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA

Date : 10/01/2020

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 Page 1 of 2

C/TAXAP/934/2008 ORDER monetary limits is as follows: Sr. No. Appeals/SLP 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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