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

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TAXAP/254/2019HC GujaratGJHC24036291201909 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 appeal is not pressed and is disposed of in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The reasoning is that the monetary limit for appeals before the High Court, as per the new policy, is Rs. 1,00,00,000. Since the appeal has a low tax effect, it is being disposed of without going into the merits. The ratio decidendi is that appeals with low tax effect, falling below the prescribed monetary limits in the relevant circular, can be withdrawn or not pressed. The operative direction is that the appeal is disposed of accordingly. Liberty is reserved for the Revenue to revive the tax appeal in case of any difficulty.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax 1 against Amtech Electronics (India) Ltd. The appeal was notified for an appropriate order due to low tax effect. The appeal was not pressed by the appellant in view of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular sets out new monetary limits for filing appeals. The High Court noted the table of monetary limits for appeals before different authorities. The appeal was disposed of accordingly, with liberty reserved for the Revenue to revive it in case of difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, considering Circular No. 17/2019? The appellant (Revenue) argued that the appeal is not pressed in view of the low tax effect as per Circular No. 17/2019. The respondent (Assessee) did not record any arguments. The Circular No. 17/2019, dated August 8, 2019, issued by the CBDT, sets revised monetary limits for filing appeals before various authorities, including the High Court. The appeal falls within the category of appeals to be disposed of based on this circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/254/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 254 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/254/2019 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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