Assistant Commissioner of Income-tax, Circle - 3, Aurangabad V. Amit Bhaskarrao Sanap, Aurangabad

MA 157/PUN/2022

AI Insights

The case involves the Income Tax Department (Revenue) challenging a Tribunal order that dismissed their appeal due to low tax effect. The appeal concerned the deletion of an addition of Rs.69,04,126 by the Assessing Officer (AO), which was considered as bogus long-term capital gains. The Revenue argued that the case fell under an exception in Circular No.23 of 2019, which pertains to organized tax evasion schemes through bogus capital gains on penny stocks, thus not requiring dismissal on the grounds of low tax effect. The Tribunal, after considering the arguments and the relevant circular, decided to recall the earlier order and set the case for a new hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137895 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 7 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-10-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-08-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 27-02-2020
• Laws Referred To: Circular No.23 of 2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A”, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER Miscellaneous Application No.157/PUN/2022 (arising out of ITA No.2193/PUN/2017) Assessment Year : 2014-15 ACIT, Circle – 3, Aurangabad Vs. Shri Amit Bhaskarrao Sanap, A-2, N- 2, CIDCO, Aurangabad PAN : AVIPS4177L Applicant) (Respondent) Assessee by : None Revenue by : Shri Ramnath P Murkunde Date of Hearing : 06-10-2023 Date of Pronouncement : 09-10-2023 ORDER PER R.S.SYAL, VP : This Miscellaneous application by the Revenue is directed against the order passed by the Tribunal on 29-08-2019 in relation to the assessment year 2014-15. 2. The ld. DR contended that the Tribunal passed a common order inter-alia, dismissing the Revenue‟s appeal on account of low tax effect. He submitted that the appeal is covered by exception clause given in the Circular No.23 of 2019 not requiring the dismissal on low tax effect and hence the order be recalled. There is no appearance from the side of assessee despite several notices issued. As such, we are proceeding to M.A.No.157/PUN/2022 Amit Bhaskarrao Sanap 2 decide the present Miscellaneous Application ex-parte qua the assessee. 3. Having heard the ld. DR and gone through the relevant material on record, it is seen that the Revenue‟s appeal involved challenging the deletion of addition of Rs.69,04,126/- by the AO on account of bogus Long term capital gains. Para 2 of Circular No.23 of 2019 provides that monetary limit prescribed for withdrawal of appeals by the Revenue would not apply to cases where the organized tax evasion scheme is noticed through bogus Long term capital gains / Short term capital gains on penny stock. As the instant case is covered by the above clause of the Circular, we recall the earlier order passed u/s 254(1) and direct the appeal to be fixed in due course after notice to the parties. 4. In the result, the Miscellaneous Application is allowed. Order pronounced in the Open Court on 09 th October, 2023. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT प ु णे Pune; दिन ांक Dated : 09 th October, 2023 GCVSR M.A.No.157/PUN/2022 Amit Bhaskarrao Sanap 3 आदेश की प्रतिलिपि अग्रेपिि / Copy of the Order is forwarded to : 1. अपील र्थी / The Appellant; 2. प्रत्यर्थी / The Respondent; 3. The concerned CIT, Pune 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, पुणे “A” / DR „A‟, ITAT, Pune; 5. ग र्ड फ ईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अविकरण ,पुणे / ITAT, Pune Date 1. Draft dictated on 06-10-2023 Sr.PS 2. Draft placed before author 06-10-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *