COMMISSIONER OF INCOME TAX-III vs. ROYALE MANOR HOTELS AND INDUSTRIES LTD

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TAXAP/66/2010HC GujaratGJHC24045998201009 September 2019Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the tax appeal is not pressed by the Revenue in view of the low tax effect, as per 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 appeal is disposed of accordingly. The court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original tax dispute was made as the appeal was not pressed.

What were the facts?

The Commissioner of Income Tax-III (Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Royale Manor Hotels and Industries Ltd (Assessee). The appeal was notified for an appropriate order due to low tax effect. The High Court considered Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes, which revised monetary limits for filing appeals. The appeal was listed for disposal in light of this circular.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect as per Circular No. 17/2019? (Question of law) Assessee's Contention: The judgment records no specific contention from the assessee. However, the appeal's disposal is based on the low tax effect, implying the assessee would benefit from this policy. Revenue's Contention: The Revenue has not pressed the appeal in view of the low tax effect, as per Circular No. 17/2019. The appeal is to be disposed of in light of this circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/66/2010 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 66 of 2010 ========================================================== COMMISSIONER OF INCOME TAX-III Versus ROYALE MANOR HOTELS AND INDUSTRIES LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR VIJAY S RANJAN(6126) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO

Date : 09/09/2019

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/66/2010 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) (A. C. RAO, J) aruna Page 2 of 2

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