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

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TAXAP/405/2019HC GujaratGJHC24041993201909 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 tax appeal is not pressed by the Revenue due to the low tax effect, in accordance with Circular No. 17/2019 dated August 8, 2019. The circular specifies that appeals before the High Court should have a monetary limit of Rs. 1,00,00,000. The court observed that the present appeal falls within the category of low tax effect as per the new policy. Consequently, the appeal was disposed of. The court also granted liberty to the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute, as the appeal was withdrawn by the Revenue on procedural grounds.

What were the facts?

The Principal Commissioner of Income Tax-4 (Revenue) filed a tax appeal before the High Court of Gujarat at Ahmedabad against M/s Torrent Pharmaceuticals Ltd (Assessee). The appeal was notified for an appropriate order due to 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 new monetary limits for filing appeals. The appeal was disposed of based on these revised limits, with liberty reserved for the Revenue to revive it if any difficulty arose.

What were the issues?

1. Whether the tax appeal should be dismissed due to low tax effect as per Circular No. 17/2019? (Question of law) Assessee's Contentions: The assessee did not present any arguments as the appeal was not pressed by the Revenue. Revenue's Contentions: The Revenue contended that the appeal should be disposed of in view of the low tax effect, citing Circular No. 17/2019. This circular establishes revised monetary limits for appeals before various authorities, including the High Court, which is Rs. 1,00,00,000. The Revenue indicated that the tax effect in this appeal fell below this prescribed limit, making it unviable to pursue.

AI-generated summary — verify with the full judgment below

C/TAXAP/405/2019 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 405 of 2019 ========================================================== THE PRINCIPAL COMMISSIONER OF INCOME TAX-4 Versus M/S TORRENT PHARMACEUTICALS 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/405/2019 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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