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

PDF · subscribers

TAXAP/751/2017HC GujaratGJHC24057090201727 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 appeal was not pressed by the appellant (Revenue) in view of Circular No. 17/2019, dated August 8, 2019. This circular establishes monetary limits for filing appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. Since the appeal was not pressed due to the low tax effect, it was disposed of accordingly. The court also granted liberty to the Revenue to revive the tax appeal if any difficulty arose. The specific tax effect or the assessment year(s) were not recorded in the judgment.

What were the facts?

The appeal, C/TAXAP/751/2017, was filed by the Principal Commissioner of Income Tax-7 against Makson Pharmaceuticals Pvt. Ltd. The appeal was notified for an appropriate order due to a low tax effect. The appeal was to be disposed of 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 not pressed by the appellant. The court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty.

What were the issues?

1. Whether the appeal should be dismissed due to a 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. However, the appeal's notification and subsequent disposal were based on the low tax effect policy. Revenue's Contention: The Revenue, through its counsel, did not press the appeal. The decision to not press the appeal was made in view of Circular No. 17/2019, which sets monetary limits for appeals. The appeal was filed before the High Court, and the monetary limit for appeals before the High Court, as per the circular, is Rs. 1,00,00,000.

AI-generated summary — verify with the full judgment below

C/TAXAP/751/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 751 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/751/2017 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

Recent GST High Court judgments

Search GST case law →