PRINCIPAL COMMISSIONER OF INCOME TAX-7 vs. MAKSON PHARMACEUTICALS PVT. LTD.

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TAXAP/749/2017HC GujaratGJHC24057088201727 January 2020Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court held that the tax appeal is not pressed by the Revenue in view of the low tax effect and Circular No. 17/2019 dated August 8, 2019. The Court noted the monetary limits stipulated in the circular for appeals before various judicial forums. Consequently, the appeal was disposed of in accordance with the circular. 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 assessment year(s) were not recorded in the judgment.

What were the facts?

The Principal Commissioner of Income Tax-7 (Revenue) filed a tax appeal before the High Court of Gujarat at Ahmedabad against Makson Pharmaceuticals Pvt. Ltd. (Assessee). The appeal was notified for an appropriate order due to low tax effect. The Court was to consider Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The appeal was not pressed by the Revenue in light of this circular and its low tax effect. The circular specifies monetary limits for appeals before the Appellate Tribunal (Rs. 50,00,000), High Court (Rs. 1,00,00,000), and Supreme Court (Rs. 2,00,00,000).

What were the issues?

1. Whether the tax appeal filed by the Revenue is to be dismissed or disposed of in view of the low tax effect and the policy outlined in Circular No. 17/2019 dated August 8, 2019? (Question of law) Contentions: Assessee: Not recorded. Revenue: The Revenue did not press the appeal due to the low tax effect, as per the revised policy outlined in Circular No. 17/2019. This circular sets monetary limits for appeals, and the present appeal falls below the threshold for filing before the High Court.

AI-generated summary — verify with the full judgment below

C/TAXAP/749/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 749 of 2017 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX-7 Versus MAKSON PHARMACEUTICALS PVT. LTD. ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MR VIJAY S RANJAN(6126) 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. 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/749/2017 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) (BHARGAV D. KARIA, J) GIRISH Page 2 of 2

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