Tribunal recalls appeal order after Revenue's appeal dismissed for falling below tax limit. The Revenue's appeal was dismissed by the Tribunal due to the tax effect falling below the monetary limit specified in the CBDT Circular. Subsequently, a ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tribunal recalls appeal order after Revenue's appeal dismissed for falling below tax limit.
The Revenue's appeal was dismissed by the Tribunal due to the tax effect falling below the monetary limit specified in the CBDT Circular. Subsequently, a clarification was issued that the Circular did not apply to cases involving bogus LTCG/STCG. Following this clarification, the Tribunal decided to recall its order and restore the appeal for hearing, with the case set to be heard on 27/04/2020. The miscellaneous application filed by the Revenue was allowed, and the order was pronounced on 10-02-2020 in Ahmedabad.
Issues: 1. Dismissal of Revenue's appeal based on CBDT Circular 2. Clarification regarding applicability of Circular on cases involving bogus LTCG/STCG 3. Request for recall of Tribunal's order 4. Decision to recall the order and restore the appeal for hearing
Issue 1: Dismissal of Revenue's appeal based on CBDT Circular The Revenue's appeal was dismissed by the Tribunal as the tax effect on relief granted by the CIT(A) was less than the monetary limit specified in the CBDT Circular dated 08/08/2019. The Circular stated that if the tax effect is below Rs. 50 lakhs, the Revenue would not file an appeal. Consequently, the Tribunal found the appeal not maintainable under the Circular.
Issue 2: Clarification regarding applicability of Circular on cases involving bogus LTCG/STCG Subsequent to the issuance of the Circular, the Revenue highlighted that the Circular would not apply to cases where assessees have claimed bogus LTCG/STCG through penny stock. This clarification was provided by the Board through Circulars dated 06/09/2019 and 16/09/2019. In light of this clarification, the Revenue filed a miscellaneous application seeking the recall of the Tribunal's order.
Issue 3: Request for recall of Tribunal's order During the hearing, the counsel for the assessee initially sought an adjournment to provide details proving that no bogus Long Term Capital Gain was claimed. However, later, the counsel informed the Court that the assessee intended to avail the benefits of the new Kar Vivad Samadhan Scheme and had no objection to allowing the miscellaneous application filed by the Revenue.
Issue 4: Decision to recall the order and restore the appeal for hearing Considering the submissions made by both the counsel for the assessee and the Revenue, the Tribunal decided to recall the order passed in ITA No.948/Ahd/2019 for AY 2014-15 dated 14/08/2019. The appeal was restored to its original number, and the Registry was directed to list it for hearing on 27/04/2020. No separate notice was to be issued as the hearing date was communicated to both parties.
In conclusion, the miscellaneous application filed by the Revenue was allowed, and the order was pronounced in the Court on 10-02-2020 at Ahmedabad.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
