Tribunal denies Revenue's appeal, emphasizes compliance with legal standards in tax cases.

The Tribunal dismissed the Revenue's Miscellaneous Application on 03/09/2021, finding no legal grounds to recall the order based on the subsequent circular. The judgment highlights the necessity of timely and relevant legal provisions in seeking order recalls, emphasizing compliance with procedural and substantive legal standards in tax cases.

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Issues:
Recall of order based on CBDT Circular No. 23/2019 - Exception for long term capital gain and short term capital loss through penny stocks.

Analysis:
The judgment revolves around the recall of an order by the Revenue based on CBDT Circular No. 23/2019, citing an exception for long term capital gain and short term capital loss through penny stocks. The Revenue sought to recall the order dated 27/08/2019 passed by the Tribunal in ITA No.2945/Mum/2018 due to low tax effect under CBDT Circular No.17/2019. The Revenue relied on the new circular to argue for the recall, claiming that the case involved an organized tax evasion scam through accommodation entries, falling under the exception specified in the circular.

The Tribunal, however, found that the contentions in the Miscellaneous Application were incorrect. The Tribunal's order did not provide any provision for recalling the order or give the Revenue the liberty to approach for a recall. Moreover, the CBDT Circular No.23/19 was issued after the Tribunal's order, rendering it inapplicable at the time of the original decision. The Tribunal referred to a similar case, DCIT vs. Shree Valji Manji Gothi, where a comparable view was taken, leading to the dismissal of the Miscellaneous Application for lacking legal merit.

In conclusion, the Tribunal dismissed the Miscellaneous Application of the Revenue on 03/09/2021, as it did not find any legal grounds to recall the order based on the subsequent circular. The judgment underscores the importance of timely and applicable legal provisions in seeking a recall of orders, ensuring adherence to procedural and substantive legal requirements in tax matters.

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