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

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TAXAP/754/2017HC GujaratGJHC24057093201727 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 should be disposed of in accordance with Circular No. 17/2019, dated August 8, 2019. The circular establishes monetary limits for appeals, with appeals before the High Court having a limit of Rs. 1,00,00,000. Since the appeal was not pressed by the appellant (Principal Commissioner of Income Tax-7) due to the low tax effect and in adherence to this circular, the appeal was disposed of. The court also granted liberty to the Revenue to revive the tax appeal if any difficulty arises. No specific finding on the merits of the original tax dispute was made as the appeal was not pressed.

What were the facts?

The appeal 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 low tax effect. The decision to dispose of the appeal was made 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 High 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 low tax effect, as per Circular No. 17/2019? The assessee did not present arguments. The revenue argued that the appeal should be disposed of in accordance with Circular No. 17/2019, which sets monetary limits for appeals before the High Court at Rs. 1,00,00,000. The appeal was not pressed by the appellant (Revenue) in view of this circular and the low tax effect.

AI-generated summary — verify with the full judgment below

C/TAXAP/754/2017 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 754 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 RULE SERVED(64) 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/754/2017 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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