PRINCIPAL COMMISSIONER OF INCOME TAX 1 vs. ACQUAFIL POLYMERS CO. P. LTD.

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TAXAP/293/2019HC GujaratGJHC24036328201909 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 is not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The Court acknowledged the new policy reflected in the circular, which sets the monetary limit for appeals before the High Court at Rs. 1,00,00,000. Consequently, the appeal was disposed of in accordance with this circular. 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 tax effect below the stipulated monetary limits, as per CBDT circulars, may not be pressed by the Revenue, leading to their disposal on that ground.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax 1 against ACQUAFIL POLYMERS CO. P. LTD. The appeal was notified for an order due to low tax effect. The appellant (Revenue) informed the High Court that the tax appeal is not pressed in view of the low tax effect, referencing 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 High Court noted the monetary limit for appeals before the High Court is Rs. 1,00,00,000.

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 present any arguments as the appeal was not pressed by the Revenue. The judgment records no argument for the assessee. Revenue's Contention: The Revenue contended that the appeal is not pressed in view of the low tax effect, citing Circular No. 17/2019 dated August 8, 2019. This circular establishes revised monetary limits for filing appeals before various authorities, including the High Court, where the limit is Rs. 1,00,00,000. The Revenue relied on this circular to justify not pursuing the appeal.

AI-generated summary — verify with the full judgment below

C/TAXAP/293/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 293 of 2019 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 1 Versus ACQUAFIL POLYMERS CO. P. LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE UNSERVED(68) 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/293/2019 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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