Income Tax Officer Ward-4(1)(1), Bangalore V. M/s Jois Securities Pvt Ltd , Bangalore

MA 63/BANG/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 9021 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-01-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 20-03-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PRIYADARSHI MISHRA BENGALURU
• Keywords: Tax effect
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBE M.P.NO.63/BANG/2020 (IN ITA NO.362/BANG/2019) ASSESSMENT YEAR : 2008-09 THE INCOME TAX OFFICER, WARD - 4(1)(1), BANGALORE. VS. M/S. JOIS SECURITIES PVT. LTD., NO.533, SAIR RAKSHA POORNA PRAGNA LAYOUT, KENGERI MAIN ROAD, SUBRAMANYA PURA, BANGALORE 560 061. PAN: AAACJ 4901 E RESPONDENT/ PETITIONER APPELLANT/RESPONDENT APPELLANT BY : NONE RESPONDENT BY : SHRI. PRIYADARSHI MISHRA, ADDL.CIT(DR)(ITAT), BENGALURU. DATE OF HEARING : 08.01.2021 DATE OF PRONOUNCEMENT : 08.01.2021 O R D E R N.V.VASUDEVAN, VICE-PRESIDENT: THIS IS A MISCELLANEOUS PETITION FILED BY THE REVENUE U/S. 254(2) OF THE INCOME TAX ACT, 1961 (THE ACT) PRAYING FOR RECALLING THE ORDER DATED 28.08.2019 PASSED BY THE TRIBUNAL DISMISSING THE AFORESAID APPEAL OF THE REVENUE ON THE GROUND THAT THE TAX EFFECT INVOLVED IN THE REVENUES APPEAL WAS LESS THAN RS.50 LAKHS AND IN VIEW THE CBDT CIRCULAR NO. 17/2009, THE REVENUE CANNOT FILE APPEALS BEFORE THE TRIBUNAL WHERE THE TAX EFFECT INVOLVED IN THE APPEAL IS LESS THAN RS. 50 LAKHS. IN THIS MP, THE REVENUE HAS CONTENDED THAT THOUGH THE TAX EFFECT IN THE ABOVE APPEAL IS LESS THAN RS.50 LACS, YET THE CASE IS COVERED BY THE EXCEPTION TO THE CBDT CIRCULAR NO.17/2009 LAID DOWN IN CBDT O.M. IN F.NO.279/MIS./M-93/2018-ITJ(PT.) DATED 16.9.2019. IT IS THE CASE OF THE REVENUE THAT THE ISSUE INVOLVED IN THE APPEAL IS WITH REGARD TO CAPITAL GAIN ON SALE OF PENNY STOCK AND THEREFORE COVERED BY THE EXCEPTION REFERRED TO ABOVE. MP NO. 63/BANG/2020 (IN ITA NO.362/BANG/2019) PAGE 2 OF 3 2. WE HAVE HEARD THE LEARNED DR WHO REITERATED THE STAND OF THE REVENUE AS CONTAINED IN THE MP. HOWEVER ON PERUSAL OF THE APPEAL PAPERS AND THE ORDERS OF THE REVENUE AUTHORITIES, IT WAS NOTICED THAT THE CASE DOES NOT INVOLVE ANY PENNY STOCK BUT THE CAPITAL GAIN DECLARED BY THE ASSESSEE WAS TREATED AS UNDISCLOSED INCOME BECAUSE OF WANT OF PROOF OF THE PURCHASE AND SALE TRANSACTION. THE CIT(A) FOUND NO SUBSTANCE IN THE CONCLUSION OF THE AO AND DELETED THE ADDITION. THIS IS NOT A CASE INVOLVING ANY PENNY STOCK AND THE SHARES IN QUESTION ARE THAT OF WELL ESTABLISHED COMPANIES LIKE BAJAJ HINDUSTAN LTD., BHARTI AIRTEL, BHEL, CANARA BANK, EDUCOMP, GRASIM, JINDAL STEEL, KARNATAKA BANK, LARSEN & TOUBRO LTD., TCS LTD., ETC. IN SUCH CIRCUMSTANCES, WE ARE OF THE VIEW THAT THE CASE CANNOT BE SAID TO BE COVERED BY THE EXCEPTION AS CONTENDED IN THE MP. THE MP IS THEREFORE DISMISSED AS DEVOID OF ANY MERIT. 3. IN THE RESULT, THE MP IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- BANGALORE, DATED: 8.1.2021. /NS/* ( B. R. BASKARAN ) ( N. V. VASUDEVAN) ACCOUNTANT MEMBER VICE PRESIDENT MP NO. 63/BANG/2020 (IN ITA NO.362/BANG/2019) PAGE 3 OF 3 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.