PRINCIPAL COMMISSIONER OF INCOME TAX-1 vs. SHAH INVESTORS HOME LTD.

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TAXAP/658/2017HC GujaratGJHC24057058201707 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the Tax Appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The Court acknowledged the policy outlined in the circular, which sets monetary limits for appeals. Specifically, for appeals before the High Court, the monetary limit is Rs. 1,00,00,000. Given this, the Court disposed of the appeal accordingly. The Revenue was granted liberty to revive the tax appeal in case of any difficulty. The specific tax effect or the amount in dispute was not recorded.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-1 (the Revenue) against Shah Investors Home Ltd. (the Assessee). The appeal was listed for an appropriate order by the Registry. The appeal was notified due to its low tax effect. The Court noted that the appeal was to be disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. The circular provides monetary limits for filing appeals. The Court referred to the table in the circular, which specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court.

What were the issues?

1. Whether the appeal should be disposed of due to low tax effect in light of CBDT Circular No. 17/2019? (Question of law) The Revenue argued that the appeal was not pressed due to the low tax effect, referencing CBDT Circular No. 17/2019. The Assessee's contentions are not recorded in the judgment. The circular establishes monetary limits for appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. The Court's decision hinges on the application of this circular to the present appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/658/2017 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 658 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-1 Versus SHAH INVESTORS HOME LTD. ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MR B S SOPARKAR(6851) for the Opponent(s) No. 1 RULE SERVED(64) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

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 8 th 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 8 th 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/658/2017 ORDER DATED: 07/01/2022 Sr. No. Appeals/SLPs in Income-tax 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) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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