TaxTMI 
TaxTMI 
2021 (11) TMI 1058
X X X X Extracts X X X X
X X X X Extracts X X X X
....appeal of the revenue on account of low tax effect without deciding the appeal on merits even when the issue under appeal was claimed of bogus LTCG on penny stock for which no monetary limits were applicable?" 2. The search and survey action was carried out at the residence and offices of Mr.S.C.Shah and at the residence of his key employees and associates on 09.04.2013. It was noticed that Mr.S.C.Shah was engaged in providing accommodation entries of share capital, share premium, share application money, unsecured loans, long term capital gain, etc. wherein the cash received by him from various persons. For providing accommodation entries, Shri S.C.Shah created an infrastructure of 212 companies which were used for layering of funds and p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat the Assessee had claimed the bogus LTCG through penny stock and hence, it falls under the exception carved out in Circular No.23 of 2019 dated 06.09.2019 and OM dated 16.09.2019 which provided that the monetary limit for filing an appeal shall not apply to the cases where Assessee claimed bogus LTCG/LTCL through penny stock. Therefore, the aforementioned question of law before this Court. 6. We have heard the learned senior advocate, Mr.Manish Bhatt assisted by the learned advocate, Mr.Karan Sanghani. 7. This Court in Special Civil Application No.7520 of 2021 has dealt with the very issue in detail and dismissed the said petition on 26.06.2021, which has not been thereafter challenged further. Yet another petition being Special Civil ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ourt have recognized the unique modus operandi involved in such scam and have passed judgements in favour of the revenue. However, in cases where some appellate fora have not given due considerations to position of law or facts investigated by the department there is no remedy available with the department for filing further appeal in view of the prescribed monetary limits. 3.In this context, Board has decided that notwithstanding anything contained in any circular issued u/s 268A specifying monetary limits for filing of departmental appeals before Income Tax Appellate Tribunal (ITAT), High Courts and SLPs/appeals before Supreme Court, appeals may be filed on merits as an exception to said circular, where Board, by way of special order di....
X X X X Extracts X X X X
X X X X Extracts X X X X
....date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub-section (1), and shall make such amendment if the mistake is brought to its notice by the assessee or the Assessing Officer" 6. So far as the facts of the case are concerned, the Appeal filed by the petitioner before the Tribunal against the order passed by the CIT(Appeals) was dismissed by the Appellate Tribunal by a common order passed on 14.08.2019, in view of the CBDT circular dated 08.08.2019. Admittedly, at the relevant time when the Tribunal passed the order dated 14.08.2019, neither the Circular No. 23 of 2019 dated 06.09.2019 nor the Office Memorandum No. 279 dated 16.09.2019 was in existence. Apart from the f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....9.2019 was issued pursuant to the said circular dated 06.09.2019 stating inter alia that by virtue of the powers of CBDT under Section 268A of the Income Tax Act, the monetary limits fixed for filing appeals before ITAT/High Court and SLPs/Appeals before Supreme Court shall not lie in case of assessees claiming bogus LTCG/STCL through penny stocks and appeals/ SLPs in such cases appeals shall be filed on merits. There is nothing to suggest in the said Circular/ Office Memorandum that they shall have retrospective effect. On the contrary, from the language employed in the said Circular dated 06.09.2019, it clearly transpires that the appeals may be filed on merits as an exception to the other Circulars issued earlier, where the Board by way ....