2019 (11) TMI 1601 - AT - Income Tax

Non maintainability of appeal on low tax effect - tax limited involved in the appeal is less than ₹ 50 lakhs - HELD THAT - After examining the latest Circular No.23 of 2019, dated 06/09/2019 and Office Memorandum dated 16/09/2019 issued by the CBDT, we are of the considered view that unambiguously the appeal of the Revenue falls under the exceptional category to monetary limits for filing the appeals before the ITAT. Therefore, considering the prayer of the Ld. DR, we hereby recall the order of the Tribunal dated 03/09/2019 with directions to the Registry to fix the appeal for hearing in regular course and issue notice of hearing to both the parties and the assessee is also directed to file paper books / evidences etc., if any, and also a furnish a copy to the Revenue in advance in order to expedite the proceedings

Summary

Issues:
Recall of order based on monetary limits for filing appeals before ITAT in exceptional cases involving bogus LTCG with respect to Penny Stocks.

Analysis:
The Appellate Tribunal ITAT Hyderabad addressed a Miscellaneous Application filed by the Revenue to recall the order passed in ITA No. 2078/Hyd/2018. The appeal was dismissed earlier based on CBDT Circulars limiting appeals for tax amounts less than ?50 lakhs. The Revenue argued that the case falls under an exceptional category due to the issue of bogus LTCG related to Penny Stocks. The Tribunal considered the latest Circulars issued by CBDT and concluded that the appeal indeed falls under the exceptional category exempted from monetary limits. Consequently, the Tribunal recalled the earlier order and directed the Registry to schedule the appeal for a regular hearing, instructing both parties to submit necessary documents for an expedited process. The Miscellaneous Application filed by the Revenue was allowed, and the decision was pronounced in open Court on 1st November 2019.