Case Law Details
ITO Vs SHM Products Pvt. Ltd. (ITAT Mumbai)
ITAT Mumbai held that appeal of the revenue is hit by the monetary limits as per CBDT circular. Further, filing of appeal based on information from investigation wing (i.e. not external source) is not covered by except mentioned in clause (e) of paragraph 10 of CBDT circular.
Facts- The assessee brought to our notice that the addition made by the AO is only to the tune of Rs. 15,25,499/- which has been deleted by the Ld.CIT(A). According to the Ld.AR, the tax effect in this case was only Rs. 4,71,379/- which is less than the prescribed monetary limit given by the CBDT. Therefore, the assessee objected against the admission of this Revenue appeal.
Conclusion- Tribunal in the case of DGIT vs M/s. Pabal Housing Pvt. Ltd. held that addition has been made by the AO on the basis of information received from investigation wing, meaning thereby, it cannot be said that the facts of the present case would be covered by the exception mentioned in clause (e) of paragraph 10 of the Circular issued by CBDT, referred above. Accordingly, I hold that the present appeal of the assessee is hit by the monetary limits and hence the revenue is precluded from pursuing this appeal.
Held that the appeal of the Revenue is not maintainable because the source of information on which AO re-opened the assessment was emanating from the investigation wing of the Income Tax Department and not from the external law enforcement agencies to fall in the exception to agitate before this Tribunal despite hit by low tax effect.
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