2022 (2) TMI 1452

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.... the assessee pointed out that the appeal filed by the Department needs to be dismissed as withdrawn on account of low tax effect i.e. the tax effect involved in the instant case is below prescribed limit for filing appeals by the Department before ITAT vide CBDT Circular No. 17 of 2019 dated 8th August, 2019. The ld. counsel for the assessee pointed out that the limit prescribed vide aforesaid Circular is less than Rs. 50 lakhs while the tax effect involved in the present appeal was only Rs. 3,51,871/-. 3. The ld. Departmental Representative on the other countered by stating that the assessee's case is covered by Circular Number 23 dated 6th September, 2019 and Office Memorandum F. No. 279/MISC./M-93/2018- ITJ(PT.) dated 16-9-2019, which ....

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.... dated 6th September, 2019 and Office Memorandum dated 16th September 2019. The issue for consideration before us is whether if the assessee has not earned any income under the "capital gains" through sale of alleged penny stocks, whether still his case is covered under the exception provided by Office Memorandum dated 16th September 2019 (which is to the effect that monetary limits fixed for filing appeals before ITAT shall not apply in case of assesses claiming bogus LTCG/STCL through penny stocks). 6. In order to appreciate the submissions made by the ld. AR of the assessee and the Ld. DR, it would be beneficial to reproduce the operative part of Circular dated 6-9-2019 and Office Memorandum dated 16-9-2019: Circular No. 23 of 2019 dat....

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....me-tax Act, 1961, the monetary limits fixed for filing appeals before ITAT/HC and SLPs/appeals before Supreme Court shall not apply in case of assesses claiming bogus LTCG/STCL through penny stocks and appeals/SLPs in such cases shall be filed on merits. 7. In Circular No. 23 of 2019 dated 06.09.2019, the CBDT had stated that notwithstanding anything contained in any Circular issued under Section 268A specifying monetary limits for filing of departmental appeals before the Income Tax Appellate Tribunal (ITAT), High Courts and SLPs/ Appeals before the Supreme Court, appeals may be filed on merits as the exception to the said Circular, where the Board by way of special order direct filing of appeals on merits in cases involved in organized t....