THE PRINCIPAL COMMISSIONER OF INCOME TAX 4 vs. SCHUTZ DISHMAN BIOTECH LTD

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TAXAP/305/2019HC GujaratGJHC24039270201907 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 of Gujarat 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 noted the monetary limits prescribed by the circular for appeals before various judicial forums. Consequently, the appeal was disposed of in accordance with this policy. The Court also reserved 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 not pressed.

What were the facts?

The Principal Commissioner of Income Tax 4 (the Revenue) filed a Tax Appeal before the High Court of Gujarat at Ahmedabad against Schutz Dishman Biotech Ltd (the assessee). The appeal was notified for passing an appropriate order due to its low tax effect. The appeal was being 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. The circular outlines monetary limits for appeals before the Income Tax Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000).

What were the issues?

1. Whether the Tax Appeal should be dismissed on the grounds of low tax effect as per Circular No. 17/2019? (Question of law) The Revenue argued that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The judgment does not record any specific arguments from the assessee.

AI-generated summary — verify with the full judgment below

C/TAXAP/305/2019 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 305 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX 4 Versus SCHUTZ DISHMAN BIOTECH LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) 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 MS. JUSTICE NISHA M. THAKORE

Date : 07/01/2022

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 referred to above, the table for monetary limits is as follows:- Page 1 of 2

C/TAXAP/305/2019 ORDER DATED: 07/01/2022 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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