COMMISSIONER OF INCOME TAX vs. SUN PHARMACEUTICAL INDUSTRIES LIMITED

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TAXAP/922/2009HC GujaratGJHC24040933200909 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 held that the appeal was not pressed by the Revenue in view of the low tax effect, as per Circular No. 17/2019 dated August 8, 2019. The circular establishes revised monetary limits for appeals, with Rs. 1,00,00,000 being the threshold for appeals before the High Court. Consequently, the appeal was disposed of in accordance with this policy. The court granted liberty to the Revenue to revive the tax appeal in case of any difficulty. The specific tax effect or the assessment year(s) were not recorded in the judgment.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (Revenue) against Sun Pharmaceutical Industries Limited (Assessee). The appeal was listed for an order due to low tax effect. The Revenue decided not to press the appeal in light of Circular No. 17/2019, dated August 8, 2019, issued by the Central Board of Direct Taxes. This circular revised the monetary limits for filing appeals. The table provided in the circular indicates a monetary limit of Rs. 1,00,00,000 for appeals before the High Court. The High Court disposed of the appeal accordingly, reserving liberty for the Revenue to revive it if any difficulty arose.

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 make any explicit arguments as the appeal was not pressed by the Revenue. However, the appeal's disposal is based on the Revenue's decision to follow the circular. Revenue's Contention: The Revenue contended that the appeal should be disposed of in view of the low tax effect, citing Circular No. 17/2019, dated August 8, 2019. This circular sets revised monetary limits for filing appeals, with Rs. 1,00,00,000 being the limit for appeals before the High Court. The Revenue chose not to press the appeal based on this policy.

AI-generated summary — verify with the full judgment below

C/TAXAP/922/2009 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 922 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/922/2009 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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