ITAT Hyderabad allows Revenue's request to recall order, directs appeal on bogus LTCG to proceed

The Appellate Tribunal ITAT Hyderabad allowed the Miscellaneous Application filed by the Revenue to recall an earlier order dismissing an appeal based on monetary limits for filing appeals before ITAT. The Tribunal determined that the appeal involving bogus LTCG with respect to Penny Stocks fell under an exceptional category exempted from the monetary limits set by CBDT Circulars. As a result, the Tribunal directed the appeal to proceed for a regular hearing, instructing both parties to submit required documents promptly. The decision was pronounced on 1st November 2019.

---

---

Issues:
Recall of order based on monetary limits for filing appeals before ITAT in exceptional cases involving bogus LTCG with respect to Penny Stocks.

Analysis:
The Appellate Tribunal ITAT Hyderabad addressed a Miscellaneous Application filed by the Revenue to recall the order passed in ITA No. 2078/Hyd/2018. The appeal was dismissed earlier based on CBDT Circulars limiting appeals for tax amounts less than Rs. 50 lakhs. The Revenue argued that the case falls under an exceptional category due to the issue of bogus LTCG related to Penny Stocks. The Tribunal considered the latest Circulars issued by CBDT and concluded that the appeal indeed falls under the exceptional category exempted from monetary limits. Consequently, the Tribunal recalled the earlier order and directed the Registry to schedule the appeal for a regular hearing, instructing both parties to submit necessary documents for an expedited process. The Miscellaneous Application filed by the Revenue was allowed, and the decision was pronounced in open Court on 1st November 2019.

---