THE PRINCIPAL COMMISSIONER OF INCOME TAX-4 vs. M/S TORRENT PHARMACEUTICALS LTD

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TAXAP/404/2019HC GujaratGJHC24041994201907 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 appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019. The court referenced the monetary limits provided in the circular, specifically noting that for appeals before the High Court, the limit is Rs. 1,00,00,000. The appeal was disposed of accordingly. The court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original assessment or the grounds of appeal, as the appeal was not pressed.

What were the facts?

The appeal, C/TAXAP/404/2019, was filed by the Principal Commissioner of Income Tax-4 (the Revenue) against M/s Torrent Pharmaceuticals Ltd (the assessee). The appeal was listed for passing an appropriate order. The High Court of Gujarat at Ahmedabad noted that the appeal was being considered due to its low tax effect. The court referred to Circular No. 17/2019, dated 8th August 2019, issued by the Central Board of Direct Taxes, which provides monetary limits for filing appeals. The appeal was ultimately disposed of in light of this circular.

What were the issues?

The primary issue before the High Court was whether the appeal should be entertained given its low tax effect, in light of the CBDT's Circular No. 17/2019. The Revenue's contention was that the appeal was not pressed due to the low tax effect, as per the policy outlined in Circular No. 17/2019. The judgment does not record any specific arguments from the assessee on this point. The court was to decide on the appropriate course of action for an appeal falling below the monetary threshold stipulated in the circular for appeals before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/404/2019 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 404 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX-4 Versus M/S TORRENT PHARMACEUTICALS LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 RULE SERVED(64) 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/404/2019 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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