COMMISSIONER OF INCOME TAX-III vs. ROYALE MANOR HOTELS AND INDUSTRIES LTD

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TAXAP/1896/2008HC GujaratGJHC24041399200809 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 both tax appeals were not pressed by the Revenue and were disposed of in view of the low tax effect, as per Circular No. 17/2019. The reasoning was based on the new policy outlined in the circular, which sets monetary limits for filing appeals. The court acknowledged the revised monetary limit for appeals before the High Court as Rs. 1,00,00,000. The operative direction was to dispose of both appeals accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the appeals were disposed of on a procedural ground related to the tax effect.

What were the facts?

The appeals before the High Court of Gujarat at Ahmedabad were filed by the Commissioner of Income Tax-III against Royale Manor Hotels and Industries Ltd. The appeals were listed for appropriate orders due to low tax effect. The court noted that both tax appeals were not pressed by the appellant (Revenue) in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular revised the monetary limits for filing appeals. The judgment mentions the 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). The appeals were disposed of based on this circular.

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 and fact, turning on the interpretation and application of the CBDT Circular). Assessee's Contention: The assessee did not present any arguments as the appeals were not pressed by the Revenue. The judgment does not record any specific arguments from the assessee. Revenue's Contention: The Revenue argued that the appeals should be disposed of in view of the low tax effect, citing Circular No. 17/2019. The Revenue indicated that the appeals were not pressed on merits due to the revised monetary limits stipulated in the said circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/1896/2008 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1896 of 2008 With R/TAX APPEAL NO. 67 of 2010 ========================================================== COMMISSIONER OF INCOME TAX-III Versus ROYALE MANOR HOTELS AND INDUSTRIES LTD ========================================================== 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

COMMON ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 1. The Registry has notified the captioned appeals for the purpose of passing appropriate orders. 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. Both the 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. 3. According to the new policy as reflected from the Circular referred Page 1 of 2

C/TAXAP/1896/2008 ORDER 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, both 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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