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

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TAXAP/67/2010HC GujaratGJHC24045999201009 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 both tax appeals were not pressed by the Revenue and were disposed of in accordance with Circular No. 17/2019. The Court acknowledged the new policy reflected 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. Since the appeals were not pressed due to low tax effect, they were disposed of on this basis. The Court granted liberty to the Revenue to revive the tax appeals if any difficulty arose. No specific findings were made on the merits of the original assessment or the grounds of appeal.

What were the facts?

The Gujarat High Court was considering two tax appeals, C/TAXAP/1896/2008 and R/TAX APPEAL NO. 67 of 2010, filed by the Commissioner of Income Tax-III against Royale Manor Hotels and Industries Ltd. The appeals were listed for appropriate orders due to low tax effect. The Court noted that both appeals were not pressed by the appellant (Revenue) in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular revised monetary limits for filing appeals. The Court also reserved liberty for the Revenue to revive the appeals in case of any difficulty.

What were the issues?

1. Whether the appeals should be dismissed due to low tax effect as per Circular No. 17/2019? (Question of law) The Revenue argued that both tax appeals were not pressed in view of the low tax effect, citing Circular No. 17/2019. The circular establishes monetary limits for appeals before various authorities, including the High Court (Rs. 1,00,00,000). The Revenue relied on this circular to withdraw their appeals. The Assessee's contentions are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/1896/2008 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1896 of 2008 With R/TAX APPEAL NO. 67 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 MRS SWATI SOPARKAR(870) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO

Date : 09/09/2019

COMMON ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 1. The Registry has notified the captioned appeals for the purpose of passing appropriate orders. The captioned appeals have been notified because of the low tax effect. These appeals are 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. Both the tax appeals are 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 Page 1 of 2

C/TAXAP/1896/2008 ORDER to above, the table for monetary limits is as follows: 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, both the appeals are 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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