TaxTMI 
TaxTMI 
2021 (3) TMI 1436
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.... "2. It is pertinent to note that CBDT has issued Circular No.17 of 2019 dated 08/08/2019, whereby it was provided that appeals of the Revenue will not be maintainable before the Tribunal if tax effect involved by virtue of relief given by the CIT(A) is less than Rs.50 lakhs in each case. After issuance of this Circular, Tribunal has identified 628 appeals including Cross Objections, where tax effect by virtue of relief given by the Ld.CIT(A) was less than Rs.50 lakhs. The ITAT the help of the Circular dismissed those appeals. 3. In the present Miscellaneous Application(s), it has been contended that after the Circular No.17 of 2019, the Department has issued Circular 23 of 2019 dated 06/09/2019 which reads as under: CIRCULAR NO. 23 OF 2019 [F.NO.279/MISC./M-93/2018- SECTION 268A OF THE INCOME-TAX ACT, 1961 - FILING OF APPEALS OR APPLICATION FOR REFERENCE BY INCOME-TAX AUTHORITY - EXCEPTION TO MONETARY LIMITS FOR FILING APPEALS SPECIFIED IN ANY CIRCULAR ISSUED UNDER SAID SECTION CIRCULAR NO. 23 OF 2019 [F.NO.279/MISC./M-93/2018-ITJ(PT.)], DATED 6-9-2019 Reference is invited to the Circulars issued from time-to-time by Central Board of Direct Taxes (the Board) under se....
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....nd SLPs/appeals before Supreme Court shall not apply in case of assessees claiming bogus LTCG/STCL through penny stocks and appeals/SLPs in such cases shall be filed on merits. 4. On the strength of these Circulars (supra), the Department filed present Miscellaneous Applications and contended therein that where an assessee has claimed Long Term Capital Gain/Short Term Capital Loss on penny stock and Assessing Officer has disallowed such claim by treating the transactions of the assessee as bogus but CIT(A) has allowed the appeals on such issues and vacated the action of the Assessing Officer, then in such cases, appeals at the instance of Revenue would not be dismissed on the strength of Circular No.17 of 2019 dated 08/08/2019, i.e. simply for the reason that tax effect is involved in such appeals is less than Rs.50 lakhs. 5. The Ld.DR relied upon the subsequent Circular of CBDT and contended that the order of the ITAT in these appeals be recalled and restored to their original numbers. 6. On the other hand, Shri S.N. Soparkar, Sr.ld.counsel for the assessee contended that on careful reading of para-3 of Circular No.23 of 2019 dated 06/09/2019 would indicates that it has n....
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....e organised tax-evasion scam is noticed through bogus Long-Term Capital Gain (LTCG)/Short Term Capital Loss (STCL) on penny stocks and department is unable to pursue the cases in higher judicial fora on account of enhanced monetary limits. It has been reported that in large number of cases, JTATs and High Court have recognized the unique modus operand! involved in such scam and have passed judgments in favour of the revenue. However, in cases where some appellate fora have not given due consideration 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 direct filing of appeal on merit in cases involved in organised tax evasion activity." 5. Pursuant to aforesaid circular, the special order ....
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....suant to such an order on and after the date of such special order and therefore doesn't contemplate a situation where the appeal which has already been filed prior to issuance of such a special order by the Revenue which shall be read and understood as filed pursuant to such special order. 8. We are conscious of the fact that CBDT low tax effect circulars issued from time to time wherein the tax effect have been progressively increased by the -Revenue with a view to minimize the litigation has been read by the Courts and the Tribunal, and even the CBDT has also clarified latter, that these CBDT Circulars shall apply not just to future appeals but also to pending appeals and therefore, where the appeal has already been filed'by the Revenue and is pending, such appeal has been held to be covered by a subsequent low tax effect circular and dismissed on account of low tax effect. However, in the instant case, the issue is regarding carving out an exception from such low tax effect limits and that too, not just by a general order but by way of a special order where such appeals can be filed, therefore, unless the special order has been passed by the CBDT and an appeal is fil....