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

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TAXAP/148/2012HC GujaratGJHC24042782201227 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 Tax Appeal should be disposed of in view of Circular No. 17/2019 dated August 8, 2019, and the low tax effect. The appeal was not pressed by the appellant (Revenue) in accordance with the new policy reflected in the circular. The court noted the monetary limit for appeals before the High Court as Rs. 1,00,00,000. The appeal was disposed of accordingly. The court also granted liberty to the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided, as the appeal was not pressed on merits.

What were the facts?

The Commissioner of Income Tax (Appellant) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Mahalaxmi Bhavan Co-operative Housing Society Ltd (Respondent). The appeal was notified for an appropriate order due to low tax effect. The High Court referred to Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes, which outlines monetary limits for filing appeals. The appeal was not pressed by the appellant in light of this circular and the low tax effect. The court reserved liberty for the Revenue to revive the appeal in case of any difficulty.

What were the issues?

1. Whether the Tax Appeal should be disposed of in view of Circular No. 17/2019 dated August 8, 2019, and the low tax effect? (Question of law) Assessee's contentions: The judgment does not record any specific contentions from the assessee. The appeal was not pressed by the appellant (Revenue). Revenue's contentions: The Revenue did not press the appeal due to the low tax effect, as per the guidelines in Circular No. 17/2019. This circular sets monetary limits for appeals before various authorities, including the High Court (Rs. 1,00,00,000). The appeal was filed by the Commissioner of Income Tax.

AI-generated summary — verify with the full judgment below

C/TAXAP/148/2012 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 148 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 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/148/2012 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) aruna Page 2 of 2

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