COMMISSIONER OF INCOME TAX IV vs. TORRENT PHARMACEUTICALS LTD

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TAXAP/751/2012HC GujaratGJHC24043040201227 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 decided that the appeal is not pressed by the Revenue in view of the low tax effect, referencing Circular No. 17/2019. The court noted the monetary limits prescribed by the circular for appeals before various judicial forums. Specifically, for appeals before the High Court, the monetary limit is Rs. 1,00,00,000. Since the appeal had a low tax effect, it was disposed of in accordance with this circular. The court reserved liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific finding was made on the merits of the original dispute.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax IV (the Revenue) against Torrent Pharmaceuticals Ltd (the Assessee). The appeal was listed for an appropriate order by the High Court of Gujarat at Ahmedabad. The appeal was notified due to its low tax effect. The court considered Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes, which sets monetary limits for filing appeals. The circular outlines monetary thresholds for appeals before the Income Tax Appellate Tribunal, High Courts, and the Supreme Court.

What were the issues?

1. Whether the appeal should be entertained given the low tax effect, in light of Circular No. 17/2019? (Question of law and fact) The Revenue's contention is that the appeal is not pressed due to the low tax effect, as per the guidelines in Circular No. 17/2019. The Assessee's contention is not recorded in the judgment.

AI-generated summary — verify with the full judgment below

C/TAXAP/751/2012 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 751 of 2012 ========================================================== COMMISSIONER OF INCOME TAX IV Versus TORRENT PHARMACEUTICALS LTD ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 NOTICE SERVED(4) 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 Page 1 of 2

C/TAXAP/751/2012 ORDER referred to above, the table for monetary limits is as follows: 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

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) Vahid Page 2 of 2

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