THE COMMISSIONER OF INCOME TAX vs. FRANCO INDIAN PHARMACEUTICALS LTD

PDF · subscribers
ITA/50/1999HC Bombay05 March 2007Bench: HON'BLE SHRI JUSTICE DR. S. RADHAKRISHNAN, HON'BLE SHRI JUSTICE J.P. DEVADHAR2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court admitted the applications for consideration, noting that the ITAT's decision was based on its own prior ruling which the Revenue had accepted. The Court did not decide the substantial question of law on merits. Instead, it directed that a "statement of the case" be called for from the ITAT for each application. This implies that the High Court intended to review the matter further based on the detailed case stated by the Tribunal. No specific finding on the assessee's status or the rate of tax was made by the High Court in this order.

What were the facts?

The Commissioner of Income Tax (Revenue) filed two applications, ITAT Application No. 50 of 1999 for Assessment Year 1988-89 and ITAT Application No. 51 of 1999 for Assessment Year 1987-1988, against Franco Indian Pharmaceuticals Ltd. (Assessee). Both applications were admitted on April 22, 1999. The High Court noted that the Income Tax Appellate Tribunal (ITAT) had relied on its own decision from an earlier year, and the Revenue had accepted that earlier decision. Consequently, the High Court directed that a "statement of the case" be called for in each application.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Honourable ITAT is right in law in holding that the status of the assessee company for the relevant Assessment Year is non-trading/industrial for the purpose of the rate of tax? Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The Revenue accepted the ITAT's decision in an earlier year and did not press for a different outcome in these applications, as indicated by the High Court's observation that "the Revenue has accepted the decision of the Tribunal of the earlier year."

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ORDINARY ORIGINAL CIVIL JURISDICTION ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPLICATION NO.50 OF 1999 INCOME TAX APPLICATION NO.50 OF 1999 INCOME TAX APPLICATION NO.50 OF 1999 The Commissioner of Income Tax, Mumbai .. Petitioner V/s Franco Indian Pharmaceuticals Ltd. .. Respondent WITH INCOME TAX APPLICATION NO.51 OF 1999 INCOME TAX APPLICATION NO.51 OF 1999 INCOME TAX APPLICATION NO.51 OF 1999 The Commissioner of Income Tax, Mumbai .. Petitioner V/s Franco Indian Pharmaceuticals Ltd. .. Respondent Mr.A.Kotangale with Mr.A.S.Rao for the Petitioner. Mr.S.S.Shetty for the Respondent.

CORAM : DR.S.RADHAKRISHNAN CORAM : DR.S.RADHAKRISHNAN CORAM : DR.S.RADHAKRISHNAN & J.P.DEVADHAR, JJ. J.P.DEVADHAR, JJ. J.P.DEVADHAR, JJ.

DATE : 5th March, 2007. DATE : 5th March, 2007. DATE : 5th March, 2007. JUDGMENT: JUDGMENT: JUDGMENT: (PER : DR.S.RADHAKRISHNAN,J.) (PER : DR.S.RADHAKRISHNAN,J.) (PER : DR.S.RADHAKRISHNAN,J.) 1. Heard the learned Counsel for the parties. The Application No.50/1999 pertains to the Assessment Year 1988-89 and the Application No.51/1999 pertains to the Assessment Year 1987-1988. Both these applications were admitted on 22.4.1999 on the following substantial question of law:- "Whether on the facts and in the circumstances of the case, the Honourable ITAT is right in law in holding that the status of the assessee company for the relevant A.Y. is non trading/industrial for purpose of rate of tax." 2. The Tribunal has relied upon its own decision of the earlier year, and the Revenue has accepted the decision of the Tribunal of the earlier year. In view thereof, these matters require consideration, and hence, the "statement of the case" in each application is called for. CNR No : HCBM020008541999 Uploaded on - 21/08/2020 Downloaded on - 28/10/2026 05:59:17

(J.P.DEVADHAR, J.) (DR.S.RADHAKRISHNAN,J.) (J.P.DEVADHAR, J.) (DR.S.RADHAKRISHNAN,J.) (J.P.DEVADHAR, J.) (DR.S.RADHAKRISHNAN,J.) Uploaded on - 21/08/2020 Downloaded on - 28/10/2026 05:59:17 Powered by TCPDF (www.tcpdf.org)

Recent GST High Court judgments

Search GST case law →