PRINCIPAL COMMISSIONER OF INCOME TAX 1 vs. CLARIS LIFESCIENCE LTD

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TAXAP/191/2015HC GujaratGJHC24047725201527 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 Revenue explicitly stated that the appeal was not pressed. The Court noted the circular's revised monetary limits for appeals, indicating that appeals with a tax effect below certain thresholds are not to be pursued. The operative direction was to dispose of the appeal accordingly. The Court also reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific issue regarding the merits of the original assessment or the grounds of appeal was decided.

What were the facts?

This matter concerns a tax appeal filed by the Principal Commissioner of Income Tax (Revenue) against Claris Lifescience Ltd (Assessee). The appeal was listed for an appropriate order due to a 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 revised monetary limits for filing appeals. The High Court noted the table of monetary limits for appeals before different authorities, including the High Court itself, which is Rs. 1,00,000.

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? Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. The judgment does not record any specific arguments made by the assessee. Revenue's Contention: The Revenue stated that the appeal is not pressed in view of the low tax effect, citing Circular No. 17/2019, dated August 8, 2019, which sets monetary limits for appeals before various authorities. The appeal falls within the revised policy due to its low tax effect.

AI-generated summary — verify with the full judgment below

C/TAXAP/191/2015 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 191 of 2015 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 1 Versus CLARIS LIFESCIENCE 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/191/2015 ORDER Sr. No. Appeals/SLPs in Incometax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,000 3 Before Supreme Court 2,00,000 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) CHANDRESH Page 2 of 2

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