2022 (5) TMI 1097

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....he present appeal, we are concerned with assessment year 2015-16 only. 2. Only effective ground raised by the Revenue is ground no. 2 which reads as under: "2. On the facts and circumstances of the case, the CIT(A) has erred in deleting the disallowance of Rs.88,22,803/- made by the AO on account of bogus short term capital loss." 3. At the outset, learned counsel for the assessee submitted that the appeal of the Revenue is not maintainable as the tax effect on the amount disputed by the Revenue is below the monetary limit of Rs. 50 lakhs in terms of CBDT Circular No. 17/2019 dated 08th August, 2019. 4. Opposing the contention of learned counsel for the assessee, learned Departmental Representative submitted, since the ass....

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....appeal falls within the exception provided in CBDT Circular No. 23/2019 dated 06.09.2019 read with Officer Memorandum No. 279 dated 16.09.2019. Whereas, learned counsel for the assessee has countered the aforesaid contention of the Revenue by submitting that CBDT Circular No. 23/2019 dated 06.09.2019 read with Officer Memorandum No. 279 dated 16.09.2019 would operate prospectively, hence, would be applicable to the appeals filed by the Revenue after 16.09.2019. Thus, the crucial issue arising before us is, the applicability of CBDT Circular No.23/2019 dated 06.09.2019 read with Office Memorandum No. 279 dated 16.09.2019 to the present appeal. 7. Undisputedly, in supersession of CBDT Circular No. 3 of 2018 dated 11.7.2018 prescribing the ....

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....enny stock. Thus, Office Memorandum No. 279 dated 16.09.2019 is in the nature of special order of the Board for filing appeal on merits in cases involving claim of bogus LTCG/STCG through penny stock. 8. The applicability of Circular No. 23/2019 dated 06.09.2019 and Office Memorandum No. 279 dated 16.09.2019 to appeals filed by the Department prior to 16.09.2019 came up for consideration before the Hon'ble Gujarat High Court in case of PCIT Vs. Anand Natwarlal Sharda (supra). The Hon'ble High Court held that there is nothing in the aforesaid circulars to suggest that they shall have retrospective effect. Thus, ultimately, the Hon'ble Court concluded that the exceptions to CBDT Circular No.17/2019 dated 08.08.2019 as provided in CBDT Circ....