ITO WARD-32(1)(1), MUMBAI V. DHARAM HASMUKHBHAI JAGDA, MUMBAI

MA 279/MUM/2022

AI Insights

The case involves the Income Tax Officer (ITO) of Ward-32(1)(1) as the applicant and Dharam Hasmukhbhai Jagda as the respondent. The ITO filed a Miscellaneous Application seeking to recall the Tribunal's earlier decision which dismissed the Revenue's appeal on the grounds of low tax effect. The core issue was the treatment of Long Term Capital Gain (LTCG) from penny stocks, which the Revenue argued should be reconsidered as it falls under an exception to the low tax effect policy as per a specific CBDT circular. The Tribunal agreed with the ITO's position, acknowledging the mistake in the initial dismissal and allowed the recall of the order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302256 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-05-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 26-01-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 02-10-2022
• Laws Referred To: CBDT Circular No. 17 of 2019, CBDT Circular F No. 279/Misc./M-93/2018-ITJ(pt) dated 16.09.2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, ‘ D‘ BENCH MUMBAI BEFORE: SHRI BASKARAN BR, ACCOUNTANT MEMBER & SHR KULDIP SINGH, JUDICIAL MEMBER MA No.279/Mum/2022 (Arising out of ITA No. 446/Mum/2021) (Assessment Year :2014-15) ITO, Ward-32(1)(1), Room No. 703, 7 th Floor, Kautilya Bhavan, BKC, Bandra (E), Mumbai. Vs. Dharam Hasmukhbhai Jagda 154/155, Santvani Building, LIC Colony, Besides Upadhya Dairy, Borivali (W) Mumbai. PAN/GIR No. AGLPJ0431B (Appellant) .. (Respondent) Assessee by None Revenue by Ms. Mahita Nair, (Sr. AR-CIT) Date of Hearing 27/01/2023 Date of Pronouncement 10/05/2023 O R D E R PER KULDIP SINGH (J.M) : Applicant-Income Tax Officer -32(1)(1) Room No. 703, Kautilya Bhawan, BKC, Mumbai by moving present Miscellaneous Application (MA) sought to recall the order dated 06.01.2022 passed by the Bench in ITA No. 446/Mum/2021 for the assessment year 2014-2015. On the ground that the appeal filed by the Revenue was wrongly dismissed by the Bench MA No. 279/Mum/2022 2 on account of low tax effect whereas issue of Long Term Capital Gain (LTCG) of penny stock is covered by the Exception as per Circular F No. 279/Misc./M-93/2018-ITJ(pt) dated 16.09.2019 issued by the CBDT. 2. We have perused the order (supra) passed by the Tribunal vide which appeal was dismissed on account of low tax effect as per CBDT Circular No. 17 of 2019 dated 08.08.2019. However as per fact narrated in the assessment year long term capital gain in this case was claimed by the assessee in penny stock case which is covered as exception to circular (supra) under Circular F No. 279/Misc./M-93/2018-ITJ(pt) dated 16.09.2019 issued by CBDT as such found, to be mistake apparent on record. Resultantly the order passed by the Tribunal dated 06.01.2022 in ITA No. 446/Mum/2021 is hereby recalled to be fixed in due course by the registry in under intimation to both the parties to the appeal. 4. In the result, Misc. Application of the Revenue is allowed. Order pronounced in the open court on 10/05/2023. Sd/- (BASKARAN BR) Sd/- (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 10/05/2023 Santosh, Sr. PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. The CIT(A), Mumbai. 4. CIT MA No. 279/Mum/2022 3 BY ORDER, (Sr. Private Secretary / Asstt. Registrar) Mumbai Date Initial 1. Draft dictated on 09/05/2022 Sr.PS 2. Draft placed before author 10/05/2023 Sr.PS 3. Draft proposed & placed before the second member JM/AM 4. Draft discussed/approved by Second Member. JM/AM 5. Approved Draft comes to the Sr.PS/PS Sr.PS/PS 6. Kept for pronouncement on 10.05.2023 Sr.PS 7. File sent to the Bench Clerk 12.05.2023 Sr.PS 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed Yes 5. DR, ITAT, Mumbai 6. Guard file. //True Copy//