PRINCIPAL COMMISSIONER OF INCOME TAX 1 vs. AMTECH ELECTRONICS (INDIA) LTD.

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TAXAP/253/2019HC GujaratGJHC24036285201909 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 was not pressed by the appellant (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. Since the appeal fell under this category and was not pressed due to the low tax effect, the court disposed of the appeal accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The ratio decidendi is that appeals with a low tax effect, as defined by CBDT circulars, can be withdrawn or not pressed by the Revenue, leading to their disposal by the courts.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax 1 against Amtech Electronics (India) Ltd. The appeal was listed for an appropriate order due to a 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 Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. The circular outlines new monetary limits for filing appeals. The appeal was not pressed by the appellant due to this low tax effect.

What were the issues?

1. Whether the appeal should be dismissed due to a low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's contentions: The assessee did not explicitly argue any points as the appeal was not pressed. However, the underlying reason for not pressing the appeal is the low tax effect as per the circular. Revenue's contentions: The revenue, through its counsel, indicated that the appeal was not pressed in view of the low tax effect, referencing Circular No. 17/2019. The revenue relied on the policy outlined in the aforementioned circular, which sets monetary limits for appeals before various authorities, including the High Court (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/253/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 253 of 2019 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 1 Versus AMTECH ELECTRONICS (INDIA) LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MS VAIBHAVI K PARIKH(3238) 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/253/2019 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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