COMMISSIONER OF INCOME TAX-I vs. DISHMAN PHARMACEUTICALS & CHEMICALS LTD

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TAXAP/1097/2011HC GujaratGJHC24045348201127 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 was not pressed by the Revenue due to the low tax effect, in accordance with 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. The Court noted that the appeal was being disposed of in view of this policy. The Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the original dispute was made, as the appeal was disposed of on procedural grounds related to the revenue's policy on low tax effect appeals.

What were the facts?

The appeal was filed by the Commissioner of Income Tax-I (Revenue) against Dishman Pharmaceuticals & Chemicals Ltd (Assessee). The appeal was listed for passing an appropriate order. The Registry notified the appeal due to low tax effect. The appeal was to be disposed of in light of Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. The circular outlines monetary limits for appeals. The appeal was not pressed by the Revenue in view of the low tax effect as per the said circular.

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 make any specific arguments recorded in the judgment. However, the appeal was not pressed by the Revenue. Revenue's Contention: The Revenue submitted that the appeal was not pressed in view of the low tax effect, referencing Circular No. 17/2019 dated August 8, 2019. This circular sets monetary limits for appeals before various authorities, including the High Court, which was Rs. 1,00,00,000. The appeal was being disposed of in accordance with this new policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/1097/2011 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1097 of 2011 ========================================================== COMMISSIONER OF INCOME TAX-I Versus DISHMAN PHARMACEUTICALS & CHEMICALS 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 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/1097/2011 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) aruna Page 2 of 2

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