PRINCIPAL COMMISSIONER OF INCOME TAX 1 vs. CAMA HOTELS LTD

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TAXAP/288/2018HC GujaratGJHC24011258201827 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided to dispose of the tax appeal. The reasoning was based on Circular No. 17/2019, which sets monetary limits for appeals. Since the tax effect was low and the appeal was not pressed by the revenue in light of this circular, the appeal was disposed of. 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 1 against Cama Hotels Ltd. The appeal was listed for an order due to low tax effect. The Court noted Circular No. 17/2019, dated August 8, 2019, issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, which sets monetary limits for appeals. The appeal was not pressed by the appellant in view of this circular and the low tax effect.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, considering Circular No. 17/2019. The assessee did not present any arguments. The revenue argued that the appeal should be disposed of in light of Circular No. 17/2019, which specifies monetary limits for appeals before various authorities, including the High Court. The revenue stated that the appeal was not pressed due to the low tax effect as per the new policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/288/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 288 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 1 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. 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/288/2018 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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