INCOME TAX ACT, 1961

Section 254

Appeal (Tribunal) - Rectification of mistake - Revenue contended that issue involved in instant case was bogus Long Term Capital Gain (LTCG) through penny stocks in which the issue had to be decided on merits and not the monetary limit -

Revenue filed miscellaneous application against the order passed by Tribunal and requested to rectify the mistake under section 254(2) recalling the earlier order passed by the Tribunal. Tribunal had dismissed appeal of Revenue in light of the CBDT's Circular vide No. 17/2019, dated 8-8-2019, having lower tax effect. Case of revenue was that issue involved in instant case was bogus Long Term Capital Gain (LTCG) through penny stocks in which the issue had to be decided on merits and not the monetary limit as per the CBDT OM No. 279/Misc./M-93/2018-ITJ(Pt.), dated 16-9-2019 and circular of CBDT No. 23 of 2019, dated 6-9-2019. Held: Appeal of the Revenue was filed on 22.05.2019 and therefore, the instant appeal was not filed pursuant to such a special order of the CBDT dated 16-9-2019 and thus, the matter did not fall in any exception as so prescribed by the CBDT in its earlier circular dated 8.8.2019 and the special order did not apply in the instant case and appeal was thus rightly dismissed by Tribunal on account of low tax effect in light of CBDT's circular dated 8.8.2019. Both CBDT Circular no. 23 of 2019 and special order dated 16-9-2019 were not in existence and thus not part of the record at the time when the matter was heard on 20.08.2019 or at the time of passing of order by the Tribunal on 21.08.2019 and therefore, non-consideration of such Circular and the special order so passed by the CBDT was not a mistake apparent from record which can be rectified within the narrow compass of section 254(2).

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

SUBSCRIBE FOR FULL CONTENT