2018 Supreme(SC) 1013

SUPREME COURT OF INDIA
ROHINTON FALI NARIMAN, INDU MALHOTRA, JJ.
COMMISSIONER OF INCOME TAX, KOCHI – Appellant
VERSUS
M/S HOTEL AND ALLIED TRADES (P) LTD. – Respondent
CIVIL APPEAL NO. 7126 OF 2008
Decided on : 17-09-2018

Appeals are dismissed if the tax effect involved is below the monetary threshold prescribed by the circular of the relevant tax authority.

Headnote:(A) Taxation - Circular of tax authority - Tax effect - Threshold for filing appeals - Tax effect less than Rs.1,00,00,000/- - Appeal covered by the circular - Dismissed.

Facts of the case:
These appeals relate to a tax dispute where the tax effect involved is less than one crore rupees.

Findings of Court:
The court observed that because the tax effect is less than Rs.1,00,00,000/-, the appeals are covered by the circular issued by the tax authority.

Issues: Whether the appeals are maintainable given that the tax effect falls below the threshold limit prescribed by the tax authority's circular.

Ratio Decidendi: When the tax effect in an appeal is below the monetary limit specified in the relevant tax authority's circular, such appeals are to be dismissed.

Result: Appeals dismissed.