THE PRINCIPAL COMMISSIONER OF INCOME TAX 4 vs. ZYDUS HOSPIRA ONCOLOGY PVT LTD

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TAXAP/1319/2018HC GujaratGJHC24070398201807 January 2022Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MS. JUSTICE NISHA M. THAKORE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the tax appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The court referred to the monetary limits stipulated in the circular, which specifies Rs. 1,00,00,000 as the limit for appeals before the High Court. 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. No specific findings were made on the merits of the case, as the appeal was withdrawn by the appellant.

What were the facts?

This judgment concerns two tax appeals filed by the Principal Commissioner of Income Tax against Zydus HOSPira Oncology Pvt Ltd. The appeals were listed for an appropriate order by the High Court of Gujarat at Ahmedabad. The appeals were notified due to a low tax effect. The court noted that the appeals were to be disposed of in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals.

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. 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, dated August 8, 2019. The circular establishes monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. The Revenue indicated that the appeal was not pressed due to this low tax effect.

AI-generated summary — verify with the full judgment below

C/TAXAP/1319/2018 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1319 of 2018 With R/TAX APPEAL NO. 1 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX 4 Versus ZYDUS HOSPIRA ONCOLOGY PVT LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 DARSHAN R PATEL(8486) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

COMMON 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 8 th 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 8 th 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 Page 1 of 2

C/TAXAP/1319/2018 ORDER DATED: 07/01/2022 referred to above, the table for monetary limits is as follows:- Sr. No. Appeals/SLPs in Income-tax 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) (NISHA M. THAKORE,J) A. B. VAGHELA Page 2 of 2

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