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TMI Blog2020 (2) TMI 1145X X X X Extracts X X X X X X X X Extracts X X X X ..... "1. Vide order dated 02.09.2019 in ITA No. 535/JP/2019 for A.Y. 2013-14 in the case of Sh. Surendra Kumar Patni, 421, Saraogi Mansion, M. I. Road Jaipur received in the office of Pr. CIT-1, Jaipur on 25.10.2019, the Hon'ble Tribunal while deciding both the grounds of the Departmental appeal has dismissed the appeal of the department on the basis of prescribed monetary limit stating as under :- " Accordingly, the appeal of the department is not maintainable being monetary limit is less than/not exceeding Rs. 50,00,000. The department is at liberty to file the Miscellaneous Application in case the tax effect in this appeal is found to be more than Rs. 50,00,000/- or the case falls in any of the exceptions of the circular" 2. On p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 23 of 2019 has been issued by the CBDT only on 6.09.2019 after passing of the order of the Tribunal on 2.09.2019 and further, in the said circular, the CBDT has stated that it has decided that the appeal may be filed on merits as an exception to said circular, where the Board by way of special order direct filing of appeal on merits in cases involved in organized tax evasion activity. It was submitted that the said circular has to be read in respect of future appeals and not appeals which have already been disposed off by the Tribunal and secondly, the Board has to issue a special order directing filing of an appeal on merits in such cases. It was further submitted that the Board has since issued an office memorandum dated 16.09.2019 wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from time to time by Central Board of Direct Taxes (the Board) under section 268A of the Income-tax Act,1961 (the Act), for laying down monetary limits and other conditions for filing of departmental appeals before Income Tax Appellate Tribunal (ITAT). High Courts and. SLPs/appeals before Supreme Court. 2. Several references have been received by the Board that in large number of cases where 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, ITATs and High Court have recognized the unique modus operandi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re 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. On reading of the aforesaid circular no. 23 of 2019 so issued by the CBDT, we find that the CBDT has decided that notwithstanding monetary limits for not filing/pursuing appeals in terms of any circular already issued under section 268A of the Act specifying the monetary limits, the appeals by the Revenue can still be filed on merits in cases involving organized tax evasion activity. However, in respect of which all cases or category of cases, such appeal can be filed shall be decided by way of a special order passed by the CBDT. There is thus a specific requirement for issuance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 filed pursuant to such a special order, the exception cannot be read and u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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