The Tax Publishers2021 TaxPub(DT) 0837 (Jp-Trib)



Dy. CIT v. Manoj Rathi

M.A. No. 28/JP/2020 (Arising out of ITA No. 1252/JP/2018)

9 December, 2020

Assessee by: P.C. Parwal (CA)

Revenue by: Runi Pal (Addl. Commissioner)


Vikram Singh Yadav, A.M.

The present miscellaneous application has been filed by the Revenue against the order passed by the Co-ordinate Bench in ITA No. 1258/JP/2018, dated 22-8-2019.

2. In this regard, the learned Departmental Representative submitted that the order of the Tribunal is not acceptable to the Department as the Tribunal has not appreciated the finding of the assessing officer after considering the information received from Investigation Unit, Delhi and report of SEBI. During the year under consideration, it was clearly found that the assessee has taken accommodation entry of Rs. 81,82,076 in the form of LTCG and paid commission, hence this is the case of penny stock and falls under exception to monetary limits for filing appeals specified as per CBDT's Circular No. 23 of 2019, dated 6-9-2019. Consideration the above mentioned facts and despite the tax effect involved in the case being Rs. 27,39,436 which is below the limit prescribed by the Board vide Circular No. 17/2019 for filing appeal before the Tribunal, it is prayed as per section 254(2) of the Income Tax Act, 1961 that the Order, dated 22-8-2019 in ITA No. 156/JP/2019 be recalled in view of exception to monetary limits for filing appeals specified as per CBDT's Circular No. 23 of 2019, dated 6-9-2019. It was submitted by the learned Departmental Representative that the said Circular, dated 6-9-2019 should be read in continuation of the earlier CBDT Circular, dated 8-8-2019 which was also issued by way of amendment to earlier Circular No. 3 of 2018 and once the said circular has been issued, the Department is not precluded from filing its appeal and getting its appeal heard on merits and thus, the appeal so dismissed on account of low tax effect may be recalled and the matter be heard on merits. Further, reliance was placed on the decision of the Ahmedabad Benches of the Tribunal in case of ITO v. Satish M Patel (MA No. 377/Ahd/2019 arising out of ITA No. 948/Ahd/2019, dated 10-2-2020) and ITO v. Ambrish Chandra Sharma (MA No. 369/Ahd/2019 arising out of ITA No. 2484/Ahd/2018, dated 10-2-2020) : 2020 TaxPub(DT) 1349 (Ahd-Trib).