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

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TAXAP/506/2019HC GujaratGJHC24046147201927 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 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 a limit of Rs. 1,00,00,000 for appeals before the High Court. Consequently, the appeal is disposed of accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific finding on the merits of the tax dispute, if any, was not addressed as the appeal was not pressed.

What were the facts?

The Principal Commissioner of Income Tax (Central), Surat, filed a tax appeal before the High Court of Gujarat at Ahmedabad against M/s Happy Home Corporation. The appeal was notified for an appropriate order due to 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 that appeals before the High Court should have a monetary limit of Rs. 1,00,00,000. The judgment does not specify the assessment year(s) or the amount in dispute, nor does it detail the procedural history prior to this hearing.

What were the issues?

1. Whether the tax appeal should be dismissed on the grounds of low tax effect, as per Circular No. 17/2019 issued by the CBDT? (Question of law) Assessee's Contention: The assessee did not make any specific arguments as the appeal was not pressed. The judgment states the appeal is not pressed in view of the low tax effect and the circular. Revenue's Contention: The revenue, through Mrs. Mauna M. Bhatt, appeared before the court. The judgment indicates the appeal was notified due to low tax effect and was to be disposed of keeping in mind the circular. The revenue did not press the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/506/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 506 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/506/2019 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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