PRINCIPAL COMMISSIONER OF INCOME TAX vs. SWISS GLASS COAT EQUIPMENT LTD.,

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TAXAP/928/2017HC GujaratGJHC24057194201727 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 appeal should be disposed of in view of the low tax effect, as per Circular No. 17/2019. The reasoning was based on the new policy reflected in the circular, which sets monetary limits for appeals. For appeals before the High Court, the monetary limit is Rs. 1,00,00,000. Since the appeal was not pressed by the Revenue due to this low tax effect policy, the court found it appropriate to dispose of the appeal. The operative direction was to dispose of the appeal accordingly, with liberty reserved for the Revenue to revive the tax appeal in case of any difficulty. No specific issue was left undecided; the decision was procedural based on the Revenue's non-prosecution.

What were the facts?

The Principal Commissioner of Income Tax (Revenue) filed a tax appeal before the High Court of Gujarat at Ahmedabad against Swiss Glass Coat Equipment Ltd. (Assessee). The appeal was notified for an appropriate order due to low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines monetary limits for filing appeals, with a limit of Rs. 1,00,00,000 for appeals before the High Court. The High Court disposed of the appeal accordingly, reserving liberty for the Revenue to revive it if any difficulty arose.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not appear to make any specific arguments. However, the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue argued that the appeal should be disposed of in view of the low tax effect, citing Circular No. 17/2019. The circular specifies monetary limits for appeals, and the appeal falls within the category of those to be withdrawn or not pressed if the tax effect is below the prescribed limit for High Court appeals (Rs. 1,00,00,000).

AI-generated summary — verify with the full judgment below

C/TAXAP/928/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 928 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX Versus SWISS GLASS COAT EQUIPMENT 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/928/2017 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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