PRINCIPAL COMMISSIONER OF INCOME TAX-2 vs. INTAS PHARMACEUTICALS LTD

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TAXAP/320/2016HC GujaratGJHC24051734201627 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal decided that the appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The Circular establishes monetary limits for appeals before various authorities, including High Courts, at Rs. 1,00,00,000. The court disposed of the appeal accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the substantive grounds of appeal were not decided on merits.

What were the facts?

This matter concerns a Tax Appeal filed by the Principal Commissioner of Income Tax-2 against Intas Pharmaceuticals Ltd. The appeal was listed for an order by the High Court of Gujarat at Ahmedabad. The appeal was notified for consideration due to a low tax effect. The court was to pass an appropriate order in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which outlines monetary limits for filing appeals. The appeal was not pressed by the appellant.

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? (Question of procedure/policy) The Revenue (Principal Commissioner of Income Tax-2) argued that the appeal was not pressed due to the low tax effect, referencing Circular No. 17/2019. The Assessee (Intas Pharmaceuticals Ltd.) was the opponent in the appeal. No specific arguments were recorded for the Assessee beyond their role as the opponent.

AI-generated summary — verify with the full judgment below

C/TAXAP/320/2016 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 320 of 2016 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-2 Versus INTAS PHARMACEUTICALS 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. Page 1 of 2

C/TAXAP/320/2016 ORDER 3. According to the new policy as reflected from the Circular referred to above, the table for monetary limits is as follows: Sr.No. Appeals/SLPs in Income-tax matters Monetray

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) PALAK Page 2 of 2

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