INCOME TAX OFFICER-4(1), RAIPUR, CIVIL LINES V. ARPIT JAIN, RAIPUR

MA 28/RPR/2024

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The case involves the Income Tax Officer-4(1), Raipur, as the applicant, and Shri Arpit Jain, as the respondent. The Revenue filed a miscellaneous application arising from an earlier ITA decision, seeking to recall the Tribunal's order which had dismissed their appeal concerning a penalty order related to bogus Long Term Capital Gain (LTCG). The Revenue argued that the Tribunal had erred by not considering a specific Office Memorandum and Circular from the CBDT that pertained to the monetary limit for filing appeals in cases involving claims of bogus LTCG through penny stocks. However, the Tribunal upheld its previous decision, stating that all relevant facts and documents, including the CBDT's Office Memorandum and Circular, had been considered in the original decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35653 (ITAT-RAIPUR)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-03-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA PATEL; A WELLREASONED
• Assessee Lawyers: PUJA BAJAJ
• Keywords: Tax effect; Penny stocks; Bogus
• Section: 254(2)

Judgement Text

"आयकर अपीलȣय अͬधकरण Ûयायपीठ रायपुर मɅ। IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER AND SHRI ARUN KHODPIA, ACCOUNTANT MEMBER M.A. No.28/RPR/2024 (Arising out of ITA No.74/RPR/2024) Ǔनधा[रण वष[/Assessment Year : 2014-15 The Income Tax Officer-4(1), Raipur (C.G.) ……….. आवेदक/Applicant बनाम / V/s. Shri Arpit Jain, Jhabak Bada, Sadar Bazar, Ward-Kamasipara, Raipur (C.G.)-492 001 PAN: ARRPJ5703D ……Ĥ×यथȸ / Respondent Assessee by : Ms. Puja Bajaj, CA Revenue by : Dr. Priyanka Patel, Sr. DR सुनवाई कȧ तारȣख / Date of Hearing : 07.03.2025 घोषणा कȧ तारȣख / Date of Pronouncement : 10.03.2025 2 MA No.28/RPR/2024 A.Y.2014-15 आदेश / ORDER PER ARUN KHODPIA, AM: The captioned Miscellaneous Application has been filed by the Revenue arising out of ITA No.74/RPR/2024 for assessment year 2014-15 u/s.254(2) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) with a prayer to recall the order of Tribunal dated 20.03.2024. 2. The Revenue by filing the present miscellaneous application submitted as follows: “1.Whether on the facts and in the circumstances of the case and in law, the Hon’ble ITAT has erred in dismissing the penalty order passed by the Assessing Officer which is connected with issue of bogus Long Term Capital Gain? 2. Whether on the facts and in the circumstances of the case and in law, the Hon’ble ITAT was correct in not considering the Office Memorandum dated 16.09.2019 issued by the CBDT which is a special order with reference to Circular No.23 of 2019 dated 06.09.2019 which relaxes the monetary limit for filing appeals before ITAT/HC and SLP/appeals before Supreme Court in case of assesses claiming bogus LTCG/STCG through penny stocks? 3. Whether on the facts and in the circumstances of the case and in law, the Hon’ble ITAT has erred in dismissing the appeal only on the grounds of low tax effect whereas the Circular No.23 dated 06.09.2019 read with OM dated 16.09.2019 applies in this case? 4. Any other grounds which may be adduced at the time of hearing.” 3. The Ld. Sr. Departmental Representative submitted that the Tribunal had dismissed the appeal of the revenue and provided relief to the 3 MA No.28/RPR/2024 A.Y.2014-15 assessee on LTCG without considering the Office Memorandum dated 16.09.2019 issued by the CBDT which is a special order with reference to Circular No.23 of 2019, dated 06.09.2019. It was submitted by the Ld. Sr. DR that the Tribunal had dismissed the appeal on account of low tax effect and the Circular No.23, dated 06.09.2019 was not considered while disposing of the same. 4. The Ld. Authorized Representative of the assessee submitted that the Tribunal had dismissed the appeal of the revenue by a well-reasoned order dated 20.03.2024 which does not call for any interference. 5. We have heard the Ld. Authorized Representatives of both the parties and perused the order of the Tribunal dated 20.03.2024. We find that the Tribunal while dismissing the appeal of the revenue had considered all the facts and circumstances and documents on record a/w. Office Memorandum dated 16.09.2019 issued by the CBDT r.w. Circular No.23 of 2019, dated 06.09.2019. As the revenue by filing the present application on the aforesaid issue had sought review, which is not permissible as per the mandate of law, therefore, we are of the view that the present application filed by the revenue cannot be accepted. We are of the opinion that that in the garb of the aforesaid miscellaneous application the revenue is seeking a review of the order of the Tribunal, which is beyond the scope of its powers as envisaged u/s. 254(2) of the Act. 4 MA No.28/RPR/2024 A.Y.2014-15 6. Considering the aforesaid facts, we do not find any mistake apparent from record in the order of the Tribunal, dated 20.03.2024 and the miscellaneous application filed by the revenue is dismissed. 7. In the result, miscellaneous application filed by the revenue is dismissed. Order pronounced in the open court on 10th day of March, 2025. Sd/- Sd/- PARTHA SARATHI CHAUDHURY ARUN KHODPIA JUDICIAL MEMBER ACCOUNTANT MEMBER रायपुर/ RAIPUR ; Ǒदनांक / Dated : 10th March, 2025. SB, Sr. PS आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the Order forwarded to : 1. अपीलाथȸ /The Appellant. 2. Ĥ×यथȸ /The Respondent. 3. The Pr. CIT-1, Raipur (C.G.) 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, रायपुर बɅच, रायपुर / DR, ITAT, Raipur Bench, Raipur. 5. गाड[ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलȣय अͬधकरण, रायपुर / ITAT, Raipur. "