COMMISSIONER OF INCOME TAX (TDS), vs. HONEY SHIP BREAKING PVT. LTD.,

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TAXAP/268/2018HC GujaratGJHC24011260201827 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 is not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The Court noted the monetary limits for appeals before various judicial forums as specified in the circular. Consequently, the appeal was disposed of accordingly. The Court also granted liberty to the Revenue to revive the tax appeal in case of any difficulty. The principle established is that appeals with a low tax effect, falling below the prescribed monetary limits in CBDT circulars, may not be pressed by the Revenue, leading to their disposal. No specific issue was decided on merits; the disposal was procedural based on the Revenue's decision not to press the appeal.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax (TDS) against Honey Ship Breaking Pvt. Ltd. The appeal was listed for an appropriate order due to a low tax effect. The appeal was not pressed by the appellant 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 judgment notes 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 appeal was disposed of based on these provisions, with liberty reserved for the Revenue to revive it if any difficulty arose.

What were the issues?

1. Whether the Tax Appeal filed by the Revenue is to be dismissed due to low tax effect, considering the policy outlined in Circular No. 17/2019? (Question of law and fact, concerning the application of CBDT Circular No. 17/2019). Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. The judgment does not record any specific arguments from the assessee. Revenue's Contention: The Revenue stated that the Tax Appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019, dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board Direct Taxes. The Revenue relied on the monetary limits stipulated in the said circular for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/268/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 268 of 2018 ========================================================== COMMISSIONER OF INCOME TAX (TDS), Versus HONEY SHIP BREAKING PVT. LTD., ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MS VAIBHAVI K PARIKH(3238) 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/268/2018 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) KUMAR ALOK Page 2 of 2

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