COMMISSIONER OF INCOME TAX vs. MAHALAXMI BHAVAN CO-OPERATIVE HOUSING SOCIETY LTD

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TAXAP/147/2012HC GujaratGJHC24042781201231 July 2020Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH,HONOURABLE MR. JUSTICE J.B.PARDIWALA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat noted that the appeal was notified for an appropriate order due to its low tax effect. The Court acknowledged that the Revenue decided not to press the appeal in view of Circular No. 17/2019, dated August 8, 2019. This circular establishes a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the Court disposed of the appeal accordingly. The Revenue was granted liberty 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 Commissioner of Income Tax (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Mahalaxmi Bhavan Co-operative Housing Society Ltd (the assessee). The appeal was notified for passing an appropriate order due to its low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which revised monetary limits for filing appeals. The circular sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

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. The Revenue argued that the appeal is not pressed due to the low tax effect, referencing Circular No. 17/2019. The assessee's arguments are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/147/2012 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 147 of 2012 ========================================================== COMMISSIONER OF INCOME TAX Versus MAHALAXMI BHAVAN CO-OPERATIVE HOUSING SOCIETY LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR SN DIVATIA(1378) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA

Date : 31/07/2020

ORAL ORDER (PER : HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH) 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. Page 1 of 2

C/TAXAP/147/2012 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 Income tax 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. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) ALI ISTAYAK Page 2 of 2

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