Income Tax appeal limit will not apply to evasion scams in penny stocks

The central board of direct taxes in its circular dated 6th September 2019 directed that income tax appeal limit which was revised recently by the CBDT will not apply in cases relating to organised tax evasion by taxpayers.

The decision was taken after CBDT received several references highlighting that organised tax-evasion scams are noticed through bogus booking of long term/ short term capital gains and losses on penny stocks and the department was unable to pursue the cases in higher judicial fora given the enhanced monetary limit.

The CDBT in its last circular dated August 8th, 2019 doubled the monetary limits of tax disputes for filing appeals by the income-tax department in Income tax appellate tribunal, High Courts and the Supreme Court.

Therefore now official shall file appeals against orders in case of organised tax evasion on the basis of merit as an exception to the recent order enhancing the income tax appeal limit for the same.

Click here to read the notification.

Click here to read our previous post on this subject.