COMMISSIONER OF INCOME TAX-I vs. AAKAR LEASING & FINANCIAL SERVICES LTD

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TAXAP/1541/2009HC GujaratGJHC24041014200909 September 2019Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that all the captioned tax appeals were not pressed by the Revenue in view of the low tax effect, in accordance with Circular No. 17/2019 dated August 8, 2019. The court disposed of all the appeals accordingly. The reasoning is based on the new policy reflected in the circular, which sets monetary limits for appeals at different levels. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was decided on merits; the appeals were disposed of based on the Revenue's decision not to press them.

What were the facts?

The appeals before the High Court of Gujarat at Ahmedabad were filed by the Commissioner of Income Tax-I against Aakar Leasing & Financial Services Ltd. The appeals were listed for appropriate orders due to low tax effect. The court noted that all captioned tax appeals were not pressed by the appellant (Revenue) in view of the low tax effect, as per 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 mentions a table with monetary limits for appeals before the Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000).

What were the issues?

1. Whether the appeals should be dismissed due to low tax effect as per Circular No. 17/2019? (Question of law) The Revenue argued that the appeals were not pressed due to the low tax effect, citing Circular No. 17/2019. The assessee's arguments are not recorded in the judgment. The circular establishes new monetary limits for appeals, and the appeals in question fall below these revised thresholds, prompting the Revenue not to press them.

AI-generated summary — verify with the full judgment below

C/TAXAP/1541/2009 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1541 of 2009 With R/TAX APPEAL NO. 1542 of 2009 With R/TAX APPEAL NO. 2237 of 2009 ========================================================== COMMISSIONER OF INCOME TAX-I Versus AAKAR LEASING & FINANCIAL SERVICES LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE SERVED BY DS(65) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO

Date : 09/09/2019

COMMON ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 1. The Registry has notified all the captioned tax appeals for the purpose of passing appropriate orders. All the captioned appeals have been notified because of the low tax effect. These appeals are 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. All the captioned tax appeals are 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/1541/2009 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 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, all the appeals are disposed of accordingly. In case of any difficulty, we reserve the liberty for the Revenue to revive the tax appeal. (J. B. PARDIWALA, J) (A. C. RAO, J) aruna Page 2 of 2

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