THE PRINCIPAL COMMISSIONER OF INCOME TAX 2 vs. FERROMATIC MILACRON(INDIA) LTD

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TAXAP/727/2018HC GujaratGJHC24023503201827 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the Tax Appeal is disposed of in view of the low tax effect, as per Circular No. 17/2019. The reasoning is that the appeal was not pressed by the Revenue due to the monetary limit stipulated in the circular for appeals before the High Court. The operative direction is that the appeal is disposed of accordingly. The Court also granted liberty to the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the appeal was disposed of based on the stated policy.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax (Revenue) against Ferromatic Milacron (India) Ltd (Assessee). The appeal was notified for an appropriate order due to a low tax effect. The Revenue sought to dispose of the appeal in accordance with Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals. The appeal was not pressed by the Revenue in light of this circular and the stated monetary limits for appeals before the High Court, which is Rs. 1,00,00,000. The High Court reserved liberty for the Revenue to revive the appeal in case of difficulty.

What were the issues?

1. Whether the appeal should be disposed of in view of the low tax effect as per Circular No. 17/2019? (Question of law) Assessee's Contention: The judgment records no specific contention from the assessee. However, the appeal is not pressed by the Revenue. Revenue's Contention: The Revenue submitted that the appeal is not pressed in view of the low tax effect, citing Circular No. 17/2019, dated August 8, 2019. This circular sets monetary limits for appeals, and the appeal falls below the threshold for High Court appeals (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/727/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 727 of 2018 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX 2 Versus FERROMATIC MILACRON(INDIA) LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) 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 MR. JUSTICE BHARGAV D. KARIA

Date : 27/01/2020

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/727/2018 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) (BHARGAV D. KARIA, J) KUMAR ALOK Page 2 of 2

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