INCOME TAX ACT, 1961

Section 268A

Appeal (Tribunal) - Maintainability of appeal - Low tax effect - Information received from the Investigation Wing, whether falls in the exception provided in para 10(e) of CBDT Circular No. 3/2018

Appeal filed by Revenue was rejected due to the reason that tax effect in the appeal of the revenue was not exceeding the monetary limit as provided in CBDT Circular No. 3/2018. There was no dispute that the tax effect in the present appeal of the revenue was very low and the addition which was deleted by CIT(A) was challenged in this appeal. Department contended that this case falls in the exception provided in para 10(e) of CBDT Circular No. 3/2018 as the addition is made by AO on the basis of the information received from the Investigation Wing and, therefore, the assessment was completed on the basis of the information of the Investigation Wing which was a law enforcement agency.Held: Tribunal had taken a consistent view that information received from Investigation Wing of the Department did not fall in the category of the information received from external source being law enforcement agencies such as CBI/ED/DRI/SFIO/DGGI, etc. as provided in the exception clause (e) of para 10 of the Circular No. 3/2018. Accordingly, the appeal of the revenue was not maintainable being the monetary limit not exceeded as prescribed in CBDT Circular No. 3/2018. Hence, appeal of the revenue was dismissed.

Followed:ITO v. A.P. Gems [ITO v. A.P. Gems ITA No. 627/JP/2019, Order, dated 13-3-2020]<./i> and Dy. CIT v. Gehlot Tractors Pvt. Ltd. [ITA Nos.1165 and 1166/JP/2019, Order, dated 29-11-2019].