PRINCIPAL COMMISSIONER OF INCOME TAX 2 vs. HITACHI HOME AND LIFE SOLUTIONS (INDIA) LTD

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TAXAP/278/2015HC GujaratGJHC24047752201527 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 decided to dispose of the tax appeal. The reasoning was based on the Revenue's submission that the appeal was not pressed due to a low tax effect, aligning with the policy outlined in Circular No. 17/2019. This circular sets a monetary threshold of Rs. 1,00,000 for appeals to the High Court. Since the tax effect in this case fell below this limit, the appeal was deemed not pressable. The court disposed of the appeal accordingly. However, the court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue regarding the merits of the assessment was decided.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax (Revenue) against Hitachi Home and Life Solutions (India) Ltd (assessee). The appeal was listed for an appropriate order due to low tax effect. The High Court noted that the appeal was to be disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for appeals. The circular specifies a monetary limit of Rs. 1,00,000 for appeals before the High Court.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? Assessee's Contention: The assessee did not present any arguments as the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue submitted that the appeal was not pressed in view of the low tax effect, citing Circular No. 17/2019, dated August 8, 2019. The circular establishes monetary limits for appeals, with Rs. 1,00,000 being the limit for appeals before the High Court. The Revenue indicated that the tax effect in this appeal was below this prescribed limit.

AI-generated summary — verify with the full judgment below

C/TAXAP/278/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 278 of 2015 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 2 Versus HITACHI HOME AND LIFE SOLUTIONS (INDIA) LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE SERVED(64) 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/278/2015 ORDER Sr. No. Appeals/SLPs in Incometax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,000 3 Before Supreme Court 2,00,000 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) CHANDRESH Page 2 of 2

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