PRINCIPAL COMMMISSIONER OF INCOME TAX 2 vs. HITACHI HOME AND LIFE SOLUTIONS (INDIA) LTD.

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TAXAP/83/2019HC GujaratGJHC24012544201907 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 appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The Court noted the monetary limits prescribed by the circular for appeals before the High Court, which was Rs. 1,00,00,000. Consequently, the appeal was disposed of accordingly. The Court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. The ratio decidendi is that appeals with a tax effect below the prescribed monetary limits, as per CBDT circulars, may not be pressed by the Revenue, leading to their disposal without adjudication on merits. No specific issue on the merits of the assessment was decided.

What were the facts?

The appeal, C/TAXAP/83/2019, was filed by the Principal Commissioner of Income Tax (Revenue) against Hitachi Home and Life Solutions (India) Ltd. (Assessee). The appeal was notified for an appropriate order by the High Court of Gujarat at Ahmedabad. The primary reason for the notification and subsequent disposal was the low tax effect of the appeal, as per Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals. The appeal was not pressed by the Revenue due to this low tax effect.

What were the issues?

The Tribunal had to decide whether to proceed with the appeal given the low tax effect. The Revenue argued that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The circular provides 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 regarding the merits of the case or the applicability of the circular. The core issue was the Revenue's decision to withdraw from pursuing the appeal based on the established monetary threshold for appeals.

AI-generated summary — verify with the full judgment below

C/TAXAP/83/2019 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 83 of 2019 ========================================================== PRINCIPAL COMMMISSIONER OF INCOME TAX 2 Versus HITACHI HOME AND LIFE SOLUTIONS (INDIA) 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 ========================================================== 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/83/2019 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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