|
The Tax Publishers2020 TaxPub(DT) 5304 (Jp-Trib) INCOME TAX ACT, 1961
Section 253
Where the matter has been reopened based on information received from Investigation Wing and the assessment has been completed by AO and where the matter under appeal has tax effect less than the prescribed limit, it will continue to be governed by low tax effect circular issued by the CBDT which is binding on the Revenue.
|
Appeal (Tribunal) - Maintainability - Low tax effect - Case reopened on basis of information received from Investigation Wing
Revenue filed appeal against the tax effect calculated by AO in respect of the relief granted by CIT(A) taking a plea of exception as per clause 10(e) of Circular No. 03 of 2018, dated 20-8-2018 as the case was reopened under section 148 on the basis information received from Investigation Wing. Held: It was noted that the tax effect in this appeal was not exceeding the monetary limit as revised by the CBDT vide Circular, dated 8-8-2019 for the purpose of filing of appeal by the department before the Income Tax Appellate Tribunal from Rs. 20,00,000 to Rs. 50,00,000. The exception 10(e) which has been referred by the Revenue relates to cases where addition is 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 of Income Tax Department is 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 has been reopened based on information received from Investigation Wing and the assessment has been completed by the AO and where the matter under appeal has tax effect less than the prescribed limit, it will continue to be governed by low tax effect circular issued by the CBDT which is binding on the revenue. Thus, appeal filed by the Department was dismissed on account of low tax effect.
REFERRED :
FAVOUR : In favour of assessee.
A.Y. : 2009-10
IN THE ITAT, JAIPUR BENCH
SUBSCRIBE FOR FULL CONTENT |