COMMISSIONER OF INCOME TAX - V vs. HARSIDDH SPECIFIC FAMILY TRUST

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TAXAP/667/2010HC GujaratGJHC24046093201009 September 2019Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages

AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided to dispose of the Tax Appeal in accordance with Circular No. 17/2019, dated August 8, 2019, due to the low tax effect. The circular establishes monetary limits for appeals before various authorities, including the High Court. Since the appeal was not pressed by the Revenue in view of this circular, the High Court disposed of the appeal accordingly. The court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The principle is that appeals with low tax effects, falling below the prescribed monetary limits in the CBDT circular, can be withdrawn or disposed of without a decision on merits.

What were the facts?

The Gujarat High Court was considering a Tax Appeal filed by the Commissioner of Income Tax - V against Harsiddh Specific Family Trust. The appeal was notified for an appropriate order due to a low tax effect. The court was to dispose of the appeal in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines new monetary limits for filing appeals. The appeal was not pressed by the appellant in view of this circular and the low tax effect.

What were the issues?

1. Whether the appeal should be dismissed due to a low tax effect, as per Circular No. 17/2019? The Revenue argued that the appeal should be disposed of in accordance with the new policy outlined in Circular No. 17/2019, which sets monetary limits for appeals. The Revenue stated that the appeal was not pressed due to the low tax effect, implying acceptance of the circular's applicability. The Assessee did not record any arguments.

AI-generated summary — verify with the full judgment below

C/TAXAP/667/2010 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 667 of 2010 ========================================================== COMMISSIONER OF INCOME TAX - V Versus HARSIDDH SPECIFIC FAMILY TRUST ========================================================== 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 A.C. RAO

Date : 09/09/2019

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/667/2010 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) (A. C. RAO, J) aruna Page 2 of 2

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