COMMISSIONER OF INCOME TAX vs. SUN PHARMACEUTICAL INDUSTRIES LIMITED

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TAXAP/921/2009HC GujaratGJHC24040932200909 September 2019Bench: HONOURABLE MR. JUSTICE J.B.PARDIWALA,HONOURABLE MR. JUSTICE A.C. RAO2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court of Gujarat at Ahmedabad held that the tax appeal is not pressed by the Revenue. This decision was made in light of Circular No. 17/2019, dated August 8, 2019, which outlines monetary limits for filing appeals. The circular establishes that appeals with a tax effect below Rs. 1,00,00,000 before the High Court are generally not to be pursued. Consequently, the appeal was disposed of accordingly. The Court also reserved the liberty for the Revenue to revive the tax appeal in case of any difficulty. No specific findings were made on the merits of the original dispute, as the appeal was not pressed.

What were the facts?

This matter concerns a Tax Appeal filed by the Commissioner of Income Tax (Revenue) against Sun Pharmaceutical Industries Limited (Assessee). The appeal was listed for an appropriate order by the Registry. The appeal was brought before the High Court of Gujarat at Ahmedabad. The primary reason for the listing and subsequent order was the low tax effect of the appeal, as per Circular No. 17/2019 dated August 8, 2019, issued by the Central Board of Direct Taxes. The appeal was not pressed by the Revenue due to this circular, which sets monetary limits for filing appeals.

What were the issues?

1. Whether the appeal should be dismissed due to low tax effect, as per Circular No. 17/2019? (Question of law) Assessee's Contention: The assessee did not explicitly argue any points as the appeal was not pressed by the Revenue. However, the appeal's disposal is based on the Revenue's decision to not press it. Revenue's Contention: The Revenue stated that the appeal is not pressed in view of the low tax effect, having regard to Circular No. 17/2019. The circular specifies monetary limits for appeals before various authorities, including the High Court, which was Rs. 1,00,00,000. The appeal was disposed of based on this policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/921/2009 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 921 of 2009 ========================================================== COMMISSIONER OF INCOME TAX Versus SUN PHARMACEUTICAL INDUSTRIES LIMITED ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 MRS SWATI SOPARKAR(870) for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALA and HONOURABLE MR.JUSTICE A.C. RAO

Date : 09/09/2019

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/921/2009 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) (A. C. RAO, J) aruna Page 2 of 2

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