TMI Blog2020 (2) TMI 1145X X X X Extracts X X X X X X X X Extracts X X X X ..... bsequent low tax effect circular and dismissed on account of low tax effect. 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. CBDT Circular no. 23 of 2019 should be read along with special order of the CBDT dated 16.09.2019 in respect of appeals filed pursuant to such special order and shall thus apply to all appeals file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ITA No. 535/JP/2019 dated 02.09.2019. In the miscellaneous Application, the Revenue has requested to rectify the mistake u/s 254(2) of the Act by recalling the earlier order passed by the Bench with the following prayer:- 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 16.09.2019. She has submitted that in view of the CBDT Circular and the special order, the matter falls under the exception and therefore, the earlier order passed by the Tribunal may be recalled to hear the same on merits. 3. Per contra, the ld AR submitted that Circular No. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egard, we refer to CBDT Circular no. 23 of 2019 dated 6.09.2019, the contents thereof read as under: Subject: -Exception to monetary limits for filing appeals specified in any Circular issued under Section 268A of the Income-tax Act, 1961-reg Reference is invited to the Circulars issued 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 268A of the Income-tax Act, 1961-reg The undersigned is directed to refer to Circular No. 23 of 2019 dated 6th September, 2019 and to say that by virtue of powers of the Central Board of Direct Taxes u/s 268A of Income-tax Act,1961, the monetary limits fixed for filing appeals before ITAT/HC and SLPs /appeals before 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of such a special order by the Revenue which shall be read and understood as filed pursuant to such special 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, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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