TMI Blog2019 (11) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is noticed through bogus long term capital/short term capital gain on penny stocks. Therefore, the said Circular cannot be applied in the cases when the addition is not in respect of capital gain on penny stocks. Accordingly, the said circular will not help the cases of the department. Thus we hold that the appeals filed by the revenue do not fall in the exception as provided in the amended para 10(e) of the Circular No. 3 of 2018. Accordingly, the appeal of the department is not maintainable being monetary limit is less than/not exceeding ₹ 50,00,000/-. - Decided against revenue. - ITA No. 1165/JP/2019, ITA No. 1166/JP/2019 - - - Dated:- 29-11-2019 - Shri Vijay Pal Rao, JM And Shri Vikram Singh Yadav, AM Revenue by : Sm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gating Wing, Mumbai which is a law enforcement agency under the Ministry of Finance and accordingly the case falls under exception clause 10(e) of circular 03 of 2018 dated 20.08.2018 ? 2. As it is clear from the grounds of appeals that the tax effect in the appeals is ₹ 4,21,785/- and ₹ 3,78,525/- respectively. Thus question of maintainability of the appeals of the revenue in view of the Circular No. 3 of 2018 arises. The ld. D/R has submitted that as per the subsequent Circular dated 6th September, 2019, the CBDT has clarified exception to the monetary limits for filing of the appeals by the revenue and, therefore, the case in the present appeals falls in the exception as clarified by the CBDT in Circular No. 23 of 2019 dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per the original Circular No. 3 of 2018 these matters do not fall in the exception, however, the said circular was amended by the CBDT vide Notification dated 20.08.2018 and the amended para 10 of Circular No. 3 of 2018 reads as under :- 10. Adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect : (a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or (b) Where Board s order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or (c) Where Revenue Audit objection in the case has been accepted by the D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d have passed judgements in favour of the revenue. However, in cases where some appellate for a 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 organized tax ev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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