COMMISSIONER OF INCOME TAX-II vs. INTERNATIONAL HOUSING FINANCE CORPORATION LTD

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TAXAP/48/2012HC GujaratGJHC24042729201227 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 appellant (Revenue) in view of the low tax effect, having regard to Circular No. 17/2019 dated August 8, 2019. The circular establishes monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. The court disposed of the appeal accordingly. The reasoning is based on the administrative policy of the CBDT to avoid litigation where the tax effect is minimal. The ratio decidendi is that appeals below the prescribed monetary limits, as per CBDT circulars, may not be pressed by the Revenue. The operative direction is that the appeal is disposed of, with liberty reserved for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

The appeal was filed by the Commissioner of Income Tax-II against International Housing Finance Corporation Ltd. The assessment year(s) are not specified. The appeal was before the High Court of Gujarat at Ahmedabad. The appeal was notified for passing an appropriate order due to low tax effect, in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. The appeal was not pressed by the appellant. The circular outlines monetary limits for filing appeals before various authorities, including the High Court at Rs. 1,00,00,000. The High Court disposed of the appeal accordingly, reserving liberty for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect in accordance with Circular No. 17/2019? (Question of law) Assessee's Contention: The judgment does not record any specific contentions from the assessee. The appeal is being disposed of based on the Revenue's decision not to press it. Revenue's Contention: The Revenue, through the court's observation, is not pressing the appeal in view of the low tax effect, as per Circular No. 17/2019. This circular sets monetary limits for appeals, and the appeal falls below the threshold for High Court representation.

AI-generated summary — verify with the full judgment below

C/TAXAP/48/2012 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 48 of 2012 ========================================================== COMMISSIONER OF INCOME TAX-II Versus INTERNATIONAL HOUSING FINANCE CORPORATION LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE UNSERVED(68) 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/48/2012 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) aruna Page 2 of 2

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