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

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TAXAP/752/2017HC GujaratGJHC24057091201727 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 Revenue in view of the low tax effect, as stipulated by Circular No. 17/2019. The court acknowledged the revised monetary limits for appeals, including the threshold for appeals before the High Court. Consequently, the appeal was disposed of in accordance with this circular. The court also granted liberty to the Revenue to revive the tax appeal in case of any difficulty. No specific finding on the merits of the case was made as the appeal was not pressed.

What were the facts?

The Gujarat High Court was considering a Tax Appeal filed by the Principal Commissioner of Income Tax-7 against Makson Pharmaceuticals Pvt. Ltd. The appeal was listed for an appropriate order due to low tax effect. The court noted that the appeal was not pressed by the appellant in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular outlines revised monetary limits for filing appeals. The court acknowledged the new policy and the specific monetary limit for appeals before the High Court, which is Rs. 1,00,00,000.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, considering the CBDT's Circular No. 17/2019? (Question of law) The Revenue argued that the appeal was not pressed in view of the low tax effect, as per Circular No. 17/2019. The assessee's arguments are not recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/752/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 752 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/752/2017 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) KUMAR ALOK Page 2 of 2

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