ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-1, AMRITSAR V. SHRI RAJESH MITTAL (HUF), AMRITSAR

MA 49/ASR/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2381 (ITAT-AMRITSAR)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 17-03-2020
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 20-03-2020
• Assessment Year: 2015-2016
• Appeal Filed On: 27-11-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: KAPIL AGGARWAL LD
• Keywords: Tax effect; Penny stocks; Capital Gains; Bogus
• Section: 268A; 43; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SH. N.K. CHOUDHRY, JUDICIAL MEMBER AND SH. ANADEE NATH MISSHRA, ACCOUNTANT MEMBE R M. A. NO. 47/ASR/2019 (ARISING OUT OF ITA NO. 42 9/ASR/2019) ASSESSMENT YEAR: 2015 -16 ASSTT. C.I.T., CIRCLE-1, AMRITSAR VS. SH. NAVIN MITTAL, 44, KATRA SHER SINGH, AMRITSAR [PAN: AEYPM 1540D] (APPELLANT) (RESPONDENT) M. A. NO. 48/ASR/2019 (ARISING OUT OF ITA NO. 43 0/ASR/2019) ASSESSMENT YEAR: 2015 -16 ASSTT. C.I.T., CIRCLE-1, AMRITSAR VS. SH. RUBY MITTAL, 44, KATRA SHER SINGH, AMRITSAR [PAN: ADLPG 7029B] (APPELLANT) (RESPONDENT) M. A. NO. 49/ASR/2019 (ARISING OUT OF ITA NO. 4 31/ASR/2019) ASSESSMENT YEAR: 2015 -16 ASSTT. C.I.T., CIRCLE-1, AMRITSAR VS. SH. RAJESH MITTAL (HUF), 44, KATRA SHER SINGH, AMRITSAR [PAN: AAKHR 6016B] (APPELLANT) (RESPONDENT) M. A. NO. 50/ASR/2019 (ARISING OUT OF ITA NO. 432/ASR/2019) ASSESSMENT YEAR: 20 15-16 ASSTT. C.I.T., CIRCLE-1, AMRITSAR VS. SH. RAJESH MITTAL, 44, KATRA SHER SINGH, AMRITSAR M.A.NOS.47 TO 50/ASR/2019 (A.Y.2015-16) ASSTT. CIT VS. NAVIN MITTAL & ORS 2 [PAN: AEYPM 1542B] (APPELLANT) (RESPONDENT) APPELLANT BY: SMT. PARWINDER KAUR (LD. CIT-D.R.) SH. CHARAN DASS (LD. SR. D.R.) RESPONDENT BY: SH. ASHWANI KALIA & KAPIL A GGARWAL (LD. C.A.) DATE OF HEARING: 17.03.2020 DATE OF PRONOUNCEMENT: 17.03.2020 ORDER PER N.K.CHOUDHRY, JM: THIS ORDER SHALL DISPOSE OF THE MISCELLANEOUS APPLICATIO NS DATED 27.11.2019 FILED BY THE REVENUE DEPARTMENT FOR SEEKI NG RECALL OF THE ORDER DATED 23 RD AUGUST, 2019 PASSED BY THE CO-ORDINATE BENCH ALONG WITH OTHER CONNECTED MATTERS HAVING IDENTICAL FACTS AND CI RCUMSTANCES WHILE CONSIDERING THE CBDT CIRCULAR NO.17/2019 DATED 8 TH AUGUST, 2019 BY WHICH THE REVENUE DEPARTMENT WAS PRECLUDED FRO M FILING THE APPEAL(S) BEFORE THE APPELLATE TRIBUNAL AGAINST THE ORDER(S) IN WHICH THE TAX EFFECT DOES NOT EXCEED RS.50 LAKH. 2. HAVING HEARD THE PARTIES AND PERUSED THE MATERIAL AVA ILABLE ON RECORD INCLUDING THE ORDER UNDER CHALLENGE PASSED BY THE CO-ORDINATE BENCH. THE CO-ORDINATE BENCH VIDE COMPOSITE ORDER DATED 23 RD AUGUST, 2019 DISMISSED THE APPEALS FILED BY THE REVENUE DEPARTM ENT AS DISMISSED AS WITHDRAWN, HOWEVER THE LIBERTY WAS GRANTED TO THE REVENUE DEPARTMENT TO SEEK RECALL OF THE ORDER, IN CASE IT REALIZED THAT THE CAPTIONED APPEAL FALLS WITHIN THE EXCEPTIONS AS PRESCR IBED IN THE CIRCULAR NO. 03/2018 AND/OR HAVING INVOLVED THE TAX EFFECT MORE THAN RS. 50 LAKH. M.A.NOS.47 TO 50/ASR/2019 (A.Y.2015-16) ASSTT. CIT VS. NAVIN MITTAL & ORS 3 3. OUR ATTENTION HAS BEEN DRAWN BY THE LD. DR TO THE SU BSEQUENT CLARIFICATION/CIRCULAR NO. 23/2019 AS WELL AS MEMORANDU M NO. F. NO. 279/MISC./M-93/2018-ITJ(PT.) DATED 16.09.2019, WHICH R EADS AS UNDER: SUBJECT:- SPECIAL ORDER OR BOARD EXEMPTING CASES INVOLVING BOGUS LONG TERM CAPITAL GAINS (LTGC)/SHOR T TERM CAPITAL LOSS (STCL) THROUGH PENNY STOCKS FROM MONET ARY LIMITS SPECIFIED IN ANY CIRCULAR ISSUED U/S 268A OF THE INCOME TAX ACT, 1961:- REG. THE UNDERSIGNED IS DIRECTED TO REFER TO CIRCULAR NO . 23/2019 DATED 6 TH SEPTEMBER, 2019 AND TO SAY THAT BY VIRTUE OF POWER S OF CENTRAL BOARD OF DIRECT TAXES U/S 268A OF INCOME TA X ACT, 1961, THE MONETARY LIMITS FIXED FOR FILING APPEALS BEFORE ITA T/HIGH COURT AND SLPS/APPEALS BEFORE SUPREME COURT SHALL NOT APPLY I N CASE OF ASSESSEES CLAIMING BOGUS LTCG/STCL THROUGH PENNY ST OCKS AND APPEALS/SLPS IN SUCH CASES SHALL BE FILED ON MERITS . 4.1 THE REVENUE DEPARTMENT SOUGHT RECALL OF THE ORDER OF THE TRIBUNAL ON THE GROUND THAT THE CAPTIONED APPEALS FA LL UNDER THE AFORESAID EXCEPTION AS THE ADDITION WAS BASED ON PENNY ST OCK. ON SPECIFIC QUERY, LD. A R SH. ASHWANI KALIA ALONG WITH MR . KAPIL AGGARWAL LD. CHARTERED ACCOUNTANTS DOES NOT CONTROVERT THE FINDIN GS OF THE CBDT AND/OR CLAIM OF THE REVENUE AND EXPRESSED NO OBJE CTION TO RECALL OF THE ORDER 23-08-2019 UNDER CHALLENGE AS REQUESTED I N THE INSTANT MISCELLANEOUS APPLICATIONS. CONSIDERING THE PECULIAR FACTS A ND CIRCUMSTANCE, AS THE CASE OF THE ASSESSEES FALLS UNDER THE EXCEP TION IN VIEW OF THE CBDT CLARIFICATION DATED 16.09.2019 (SUPRA ), IN OUR CONSIDERED VIEW AND FOR THE ENDS OF JUSTICE, RECALLING OF THE ORDER DATED 23 RD AUGUST, 2019 PASSED BY THE CO-ORDINATE BENCH IS WARRANTED, HENCE ORDERED ACCORDINGLY. M.A.NOS.47 TO 50/ASR/2019 (A.Y.2015-16) ASSTT. CIT VS. NAVIN MITTAL & ORS 4 5. IN THE RESULT, THE MISCELLANEOUS APPLICATIONS FILED BY T HE REVENUE DEPARTMENT STANDS ALLOWED. CONSEQUENTLY, THE ORDER D ATED 23.08.2019 STANDS RECALLED AND THE APPEALS FILED BY TH E REVENUE DEPARTMENT ARE RESTORED. THE REGISTRY IS DIRECTED TO FI X THE CAPTIONED APPEALS IN DUE COURSE OF TIME WITH ADVANCE NOTICE TO THE PARTIES. ORDER PRONOUNCED IN THE OPEN COURT ON 17.03.2020 SD/- SD/- (ANADEE NATH MISSHRA) (N. K. CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 17/03/2020. /GP/SR PS. COPY FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THEN CIT(APPEALS) 5. SR DR, I.T.A.T. AMRITSAR 6. GUARD FILE TRUE COPY BY ORDER