ITO, NEW DELHI V. B BHUSHAN NAGPAL HUF, NEW DELHI

MA 209/DEL/2020

AI Insights

The case involves the Income Tax Department (Revenue) appealing against an order of the Income Tax Appellate Tribunal which had dismissed their earlier appeal concerning the assessment year 2013-14, on the basis that the tax effect was below the prescribed monetary limit of Rs. 50 lacs. The Revenue contended that the case involved issues of bogus long-term capital gains on penny stocks, which should be exempt from this monetary limit as per the specific exception in Circular No.23/2019. The Tribunal agreed with the Revenue's position, recalling the previous order and directing that the appeal be listed for hearing on its merits.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 826892 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 4 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-01-2026
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 24-08-2020
• Laws Referred To: Circular No.23/2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Assessee Lawyers: SANAT KAPOOR
• Keywords: Tax effect; Penny stocks; Bogus

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘D’, NEW DELHI BEFORE SH. C.N. PRASAD, JUDICIAL MEMBER AND SH. M. BALAGANESH, ACCOUNTANT MEMBER M.A. No.209/DEL/2020 (Arising out of ITA No.1233/Del/2017) Assessment Year: 2013-14 ITO New Delhi Vs B Bhushan Nagpal HUF, 377, Bhera, Enclave, Passchim VIhar, New Delhi-110087 PAN No.AACHB3259A (APPELLANT) (RESPONDENT) Appellant by Sh. Rajesh Kumar Dhanesta, Sr. DR Respondent by Sh. Sanat Kapoor, Advocate Sh. Shivam Yadav, Advocate Date of hearing: 12/09/2025 Date of Pronouncement: 09/01/2026 Printed from counselvise.com ORDER PER C.N. PRASAD, JM: Through this miscellaneous application the Revenue is requesting to recall the order of the in ITA No.1233/Del/2017 dated 28.01.2020 for the A.Y. 2013-14. 2. In the miscellaneous application the revenue contended that the Tribunal disposed of the appeal of the assessee on the ground that the tax effect in this case is less than Rs.50 lacs. The Ld. DR placing reliance on Circular No.23/2019 dated 06.11.2019 submitted that since the issue in appeal is relating to bogus long term capital gain on penny stocks, the same falls under exception and, therefore, the order of the Tribunal be recalled and the appeal may be decided on merits. 3. On the other hand Counsel for the assessee stated that the miscellaneous application was filed by the revenue on 24.08.2020 whereas the date of the order of Tribunal was 28.01.2020 and, therefore, the same is time barred. 4. The Ld. DR stated that the miscellaneous application is filed in time since certified copy of the order of the Tribunal was communicated to the Ld. CIT(Judl.) on 16.03.2020 and since the miscellaneous application is filed within the six months from the date of the service of the order of the Tribunal, the same is filed in time. Printed from counselvise.com 5. Heard rival submissions and perused the order of the Tribunal. The miscellaneous application filed by the revenue on 24.08.2020 is in time since the same was filed within six months from the date of service of Tribunal order on the Ld. CIT(Judl.). 6. Coming to merits we observed that the Ministry of Finance Department of Revenue issued circular No.23/2019 excluding the appeals which are related to bogus long term capital gain / escapement capital gain on penny stocks from the monetary limit. The said circular is as under :- 7. In view of the above circular the order passed by the Tribunal treating the revenue’s appeal as within the monetary limits is a Printed from counselvise.com mistake apparent on record and, therefore, the order dated 28.01.2020 in ITA No.1233/Del/2017 is hereby recalled. The registry is directed to list the appeal on merits in due course. Issue notice to parties. 8. In the result, the miscellaneous application filed by the revenue is allowed. Order pronounced in the open court on 09.01.2026. Sd/- Sd/- [M. BALAGANESH] [C.N. PRASAD] ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 09.01.2026 NEHA , Sr.P.S.* Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "