COMMISSIONER OF INCOME TAX-IV vs. TORRENT GUJARAT BIOTECH LTD

PDF · subscribers
TAXAP/68/2010HC GujaratGJHC24046000201007 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 dated August 8, 2019. The Court noted the monetary limits prescribed by the circular for appeals before the High Court, which is Rs. 1,00,00,000. The appeal was disposed of in accordance with this circular. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. The ratio of this decision is that appeals with a low tax effect, falling below the monetary threshold stipulated by CBDT circulars, are to be disposed of without a detailed examination of merits, provided the appellant chooses not to press the appeal.

What were the facts?

This matter concerns a tax appeal filed by the Commissioner of Income Tax-IV (the Revenue) against Torrent Gujarat Biotech Ltd (the Assessee). The appeal was listed for an appropriate order by the Gujarat High Court. The appeal was notified due to its low tax effect. The Revenue indicated that the appeal was not pressed in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board Direct Taxes, which sets monetary limits for filing appeals. The circular specifies 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). The High Court disposed of the appeal accordingly.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contention: The Assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. The judgment does not record any arguments from the Assessee. Revenue's Contention: The Revenue argued that the appeal should be disposed of due to low tax effect, referencing Circular No. 17/2019, dated August 8, 2019. This circular sets monetary limits for filing appeals before various judicial forums, including the High Court. The Revenue stated that the appeal was not pressed in view of this circular.

AI-generated summary — verify with the full judgment below

C/TAXAP/68/2010 ORDER DATED: 07/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 68 of 2010 ========================================================== COMMISSIONER OF INCOME TAX-IV Versus TORRENT GUJARAT BIOTECH LTD ========================================================== Appearance: MR MANISH R. BHATT, SENIOR ADVOCATE FOR M R BHATT & CO. (5953) for the Appellant(s) No. 1 MRS SWATI SOPARKAR(870) 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/68/2010 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

Recent GST High Court judgments

Search GST case law →