PRINCIPAL COMMISSIONER OF INCOME TAX-I vs. CAMA HOTELS LTD.,

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TAXAP/281/2016HC GujaratGJHC24051718201627 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 due to the low tax effect, in accordance with Circular No. 17/2019. The Court noted the monetary limits for appeals, specifically Rs. 1,00,00,000 for appeals before the High Court. Since the appeal falls under the category of low tax effect as per the circular, it was disposed of accordingly. The Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original assessment or the grounds of appeal, as the appeal was not pressed.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-I (the Revenue) against Cama Hotels Ltd. (the Assessee). The appeal was listed for an appropriate order by the High Court of Gujarat. The appeal was notified due to its low tax effect. The Court was to consider Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which outlines monetary limits for filing appeals. The circular specifies 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 in light of this circular.

What were the issues?

1. Whether the Tax Appeal filed by the Revenue is to be dismissed on the grounds of low tax effect, as per Circular No. 17/2019? Assessee's Contention: The Assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. However, the context implies the Assessee would benefit from the dismissal based on the low tax effect policy. Revenue's Contention: The Revenue, through its counsel, stated that the appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019. The Revenue relied on the monetary limits prescribed in the said circular for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/281/2016 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 281 of 2016 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-I Versus CAMA HOTELS LTD., ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR MANISH J SHAH(1320) 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. Page 1 of 2

C/TAXAP/281/2016 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 Monetray

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) PALAK Page 2 of 2

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