THE PRINCIPAL COMMISSIOENR OF INCOME TAX (CENTRAL), SURAT vs. M/S HAPPY HOME CORPORATION

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TAXAP/500/2019HC GujaratGJHC24046146201927 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 that the Tax Appeal is not pressed and is disposed of in view of the low tax effect, as per Circular No. 17/2019. The reasoning is based on the new policy outlined in the circular, which sets a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. Since the appeal falls under this category and is not pressed, it is disposed of. The operative direction is that the appeal is disposed of accordingly. The court reserves liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided, as the appeal was not pressed on merits.

What were the facts?

The Principal Commissioner of Income Tax (Central), Surat, filed a Tax Appeal before the High Court of Gujarat at Ahmedabad. The appeal was against M/s Happy Home Corporation. The appeal was notified for an appropriate order due to low tax effect. The court considered 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, New Delhi, which sets monetary limits for filing appeals. The appeal was to be disposed of in light of this circular, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the Tax Appeal should be dismissed due to low tax effect, considering Circular No. 17/2019? The Revenue argued that the appeal was not pressed in view of the low tax effect, referencing Circular No. 17/2019. The circular specifies monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. The judgment does not record any specific arguments from the assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/500/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 500 of 2019 ========================================================== THE PRINCIPAL COMMISSIOENR OF INCOME TAX (CENTRAL), SURAT Versus M/S HAPPY HOME CORPORATION ========================================================== 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/500/2019 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) GIRISH Page 2 of 2

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