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TMI Blog2021 (3) TMI 864X X X X Extracts X X X X X X X X Extracts X X X X ..... s revised by the CBDT vide Circular dated 08.08.2019 for the purpose of filing of appeal by the department before the Income Tax Appellate Tribunal from Rs. 20,00,000/- to Rs. 50,00,000/-. For ready reference, we reproduce the CBDT Circular No. 17 of 2019 dated 08.08.2019 as under :- Further Enhancement of Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court - Amendment to Circular 3 of 2018 - Measures for reducing litigation. Circular No. 3/2018 dated 11th July 2018 has been replaced by Circular No. 17/2019 dated 8th August 2019 to enhance Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court for reducing litigation. Appeals/SLPs in Income-tax matters Monetary Limit (Rs.) (previous limit) Monetary Limit (Rs.) (Revised Limit) Before Appellate Tribunal 20,00,000 50,00,000 Before High Court 50,00,000 1,00,00,000 Before Supreme Court 1,00,00,000 2,00,00,000 * The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . has been filed by the revenue on the ground that the CBDT Circular No. 23 of 2019 dated 06/09/2019 whereas the matter in question was already decided on 21/08/2019 while taking into consideration Circular No. 17/2019 dated 08/08/2019 as the same was applicable at that moment of time, therefore, application filed by the revenue deserves to be dismissed. In order to support his submission, the assesse has relied upon the decision of this Tribunal passed in M.A. No. 15/JP/2019, DCIT Vs Shri Piyush Swami order dated 06/03/2020. 6. We have considered the rival contentions and carefully perused the material available on record. Although, now, both the respective parties placed before us the counter decisions in their favours passed by the respective Benches of the Tribunal. However, considering the facts and circumstances of the case, we are inclined to follow the decision of the Coordinate Bench of this Tribunal in MA No. 15/JP/2020 on the ground that appeal of the revenue was disposed off vide order dated 21.08.2019 by considering the CBDT Circular No. 17 of 2019 dated 08.08.2019. Thus at the time of passing the impugned order, the Tribunal has considered the CBDT Circular No. 17 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mber of cases, ITATs and High Court have recognized the unique modus operandi 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." 6. Pursuant to aforesaid circular, the special order has been passed by the CBDT, communicated vide office memorandum dated 16.09.2019 and the contents thereof read as under:- "Subject: -Special Order of Board exempting cases involving bogus Long Term Capital Gains(LTCG)/Short Term Capital Loss (STCL) through penny stocks from m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecial order. 9. 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 filed pursuant to such a special order, the exception cannot be read and understood to apply to existing appeals which have already been filed prior to issuance of the special order. Therefore, we are of the considered view that the CBDT Circular no. 23 of 2019 should be read along with spec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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