PRINCIPAL COMMISSIONER OF INCOME TAX 3 vs. NABROS PHARMA PVT. LTD.

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TAXAP/309/2019HC GujaratGJHC24036337201909 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 appeal was not pressed by the Revenue due to the low tax effect, in accordance with Circular No. 17/2019. The circular establishes monetary limits for appeals, with Rs. 1,00,00,000 being the threshold for appeals before the High Court. Consequently, the appeal was disposed of based on this policy. The court also granted the Revenue liberty to revive the tax appeal if any difficulty arose. No specific finding was made on the merits of the original dispute, as the appeal was not pressed.

What were the facts?

The appeal, R/TAX APPEAL NO. 309 of 2019, was filed by the Principal Commissioner of Income Tax 3 (the Revenue) against Nabros Pharma Pvt. Ltd. (the assessee). The appeal was notified 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, which revised monetary limits for filing appeals. The circular specifies a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The High Court reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, considering Circular No. 17/2019 (mixed question of law and fact, concerning the interpretation and application of the circular). The Revenue argued that the appeal was not pressed in view of the low tax effect, as per 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/309/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 309 of 2019 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 3 Versus NABROS PHARMA PVT. LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 RULE SERVED(64) 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/309/2019 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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