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2022 (5) TMI 116 - HC - Income TaxMaintainability of appeal in High Court - low tax effect - Addition u/s 69A - bogus Long term Capital Gain and Short Term Capital Loss - HELD THAT:- As in the appeals preferred after the date of the Circular dated 23/2019 dated 6th September 2019 involved in organized tax evasion activity can be filed on merits before the ITAT/High Courts/ Supreme Court including the cross objections only if the CBDT passes a special order in those SLPs/appeals/cross objections before the Supreme Court/High Courts/Tribunals if the tax limit is less than the specified monetary reliefs prescribed in the Circulars issued by the CBDT under section 268A of the IT Act, 1961. These circulars under section 268A of the IT Act 1961 by the CBDT are issued with an object to not to burden the Courts and Tribunals in respect of the matters where the tax effect is less than the limit prescribed, subject to the exceptions carved out in these Circulars. It is not in dispute that the appeals filed by the appellant-revenue in this bunch of appeals allege the voluntary declaration of the amounts shown as long term capital gain and short term capital loss by the respondents-assessee during the search action under section 132 (4) of the IT Act, 1961. However, in view of the fact that the said Circular No. 23/2019 dated 6th September 2019 read with Office Memorandum dated 16th September 2019 not applicable with retrospective effect, though appellant-revenue has alleged organized tax evasion activity on the part of the respondent-assessee in those pending appeals as on the date of the said Circular No. 23/2019, the appellant-revenue cannot be allowed to pursue these appeals. In our view, since the tax effect involved in this bunch of appeals is less than the monetary limit prescribed in the earlier circulars referred to aforesaid issued by the Department of Revenue, CBDT, Ministry of Finance, Government of India, the appellant- revenue cannot be allowed to proceed with these appeals on merits. The aforesaid appeals are accordingly dismissed, however, without prejudice to rights and liberties of the appellant to approach this Court afresh in appropriate case wherever special orders have been issued by the Board as an exception to the Circular No. 17/2019 and 23/2019 where organized tax evasion activity of the assessee is noted in future i.e. after the date of the said Circular.
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