THE COMMISSIONER OF INCOME TAX vs. FRANCO INDIAN PHARMACEUTICALS LTD

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ITA/51/1999HC 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 on the substantial question of law concerning the assessee's status as non-trading/industrial for the purpose of tax rates. The Tribunal had relied on its own decision from an earlier year. Crucially, the Revenue had accepted the Tribunal's decision for that earlier year. In light of this acceptance and the prior ruling, the High Court found these matters required consideration and therefore called for the 'statement of the case' from the Tribunal. The judgment does not provide a final decision on the merits of the question of law but rather directs the procedural step of obtaining the statement of facts.

What were the facts?

The Commissioner of Income Tax (Revenue) filed two applications, ITAT Application No. 50/1999 for Assessment Year 1988-89 and ITAT Application No. 51/1999 for Assessment Year 1987-1988, against Franco Indian Pharmaceuticals Ltd. (Assessee). These applications were admitted by the High Court on April 22, 1999. The core of the dispute revolves around the tax rate applicable to the assessee company. The Tribunal had previously ruled on the tax status of the assessee for an earlier year, a decision which the Revenue had accepted. Consequently, the High Court ordered the 'statement of the case' to be called for in both applications.

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: The judgment does not record any specific contentions made by the assessee. However, the fact that the Tribunal's decision on the tax status for an earlier year was accepted by the Revenue suggests the assessee likely relied on that precedent. Revenue's Contentions: The Revenue has accepted the Tribunal's decision for the earlier year. The applications filed by the Revenue indicate a challenge to the Tribunal's finding regarding the assessee's status for the purpose of tax rates.

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 : HCBM020008551999 Uploaded on - 21/08/2020 Downloaded on - 28/10/2026 05:59:18

(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 05:59:18 Powered by TCPDF (www.tcpdf.org)

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