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Facts
The Revenue Department preferred an appeal against the order of the National Faceless Appeal Center for the Assessment Year 2012-13. The Assessee received shares in lieu of loan money and sold them in the open market as per the owner's instructions, adjusting the consideration against the loan.
Held
The Tribunal held that the Assessee's actions did not fall under any exceptions mentioned in the latest CBDT circular. Furthermore, the tax effect involved was below the prescribed limit of Rs. 60,00,000/-.
Key Issues
Whether the appeal filed by the Revenue Department should be dismissed based on the tax effect being below the prescribed limit and the Assessee's transactions not falling under CBDT circular exceptions.
Sections Cited
250 of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, MUMBAI BENCH SMC”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY
Per : Narender Kumar Choudhry, Judicial Member:
This appeal has been preferred by the Revenue Department against the order dated 27.01.2024, impugned herein, passed by the National Faceless Appeal Center (NFAC)/Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2012-13.
Admittedly the Assessee in lieu of the loan money, has also received shares as involved in the instant case and only as per the instruction of the owner of these shares, the Assessee sold the same in the open market through online platform and adjusted the consideration amount from the loan given to the owner of the shares and therefore in the considered opinion of this Court, the case does not fall in any of the exception as enumerated in the latest CBDT circular dated 17.09.2024.
As the tax effect involved in the instant case is below than the prescribed limit of Rs.60,00,000/- as determined by the CBDT circular referred above, the appeal filed by the Revenue Department is liable to be dismissed, however, with liberty to the Revenue Department to seek recall of this order, in case of finding some contrary judgment by the Hon’ble Jurisdictional High Court.
In the result, the appeal filed by the Revenue Department stands dismissed.
Order pronounced in the open court on 12.12.2024.