|
The Tax Publishers2020 TaxPub(DT) 2028 (Jp-Trib) INCOME TAX ACT, 1961
Section 254
Where the matter was reopened based on information received from Investigation Wing and assessment was completed by AO where the matter under appeal had tax effect less than the prescribed limit, it will continue to be governed by low tax effect circular issued by the CBDT which was binding on the revenue, therefore, appeal filed by Department was dismissed on account of low tax effect.
|
Appeal (Tribunal) - Maintainability of appeal - Monetary limit -
This appeal by Department was directed against the order of CIT(A) for the assessment year 2009-10. As per the grounds of appeal, the tax effect calculated by AO in respect of the relief granted by CIT(A) which was challenged in the present appeal was less than the limit prescribed by CBDT. Appeal filed by revenue was disposed of because the tax effect in the appeal was less than Rs. 20 lakhs as per the CBDT vide Circular, dated 8-8-2019, F.No. 279/Misc.142/2007-ITJ (Pt).Held: The exception 10(e) which was referred by Department relates to cases where addition was based on information received from external sources in the nature of law enforcement agencies such as CBI/ED/DRI/SFIO/Directorate General of GST Intelligence (DGGI). Both administratively and functionally, there cannot be any dispute that the Investigation Wing was part of Income Tax Department and is therefore clearly not an external law enforcement agency and that too, as specified in the aforesaid exception. Therefore, where the matter was reopened based on information received from Investigation Wing and assessment was completed by AO where the matter under appeal had tax effect less than the prescribed limit, it will continue to be governed by low tax effect circular issued by the CBDT which was binding on the Revenue.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, JAIPUR BENCH
SUBSCRIBE FOR FULL CONTENT
|