Information from DIT (I), not to considered as Information from External Source: ITAT

Clipped from: https://www.taxscan.in/information-from-dit-i-not-to-considered-as-information-from-external-source-itat/207379/?utm_source=izooto&utm_medium=push_notifications&utm_campaign=Information%20from%20DIT%20(I)

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By Gayathri C.H – On September 26, 2022 6:05 pm

DIT - Information From External Source - ITAT - taxscan

The Income Tax Appellate Tribunal “SMC” Bench, Mumbai, has, in a recent appeal filed by the revenue, held that the information received from the Directorate of Income tax (investigation), cannot be considered to be an information received from an external source.

The aforesaid observation was made by the tribunal when the revenue had filed had an appeal, challenging the order dated 16-02- 2022 passed by CIT(A)-47, Mumbai, with regard to the assessment year 2012-13.

The contention of the AR being the less tax effect involved in the appeal, which is below the monetary limit of Rs.50.00 lakhs as prescribed by CBDT for an appeal to be filed before the Tribunal, the same was countered by the D.R on the ground that the appeal is being covered by an exception provided in a Circular dated 20th August, 2018.

Hearing the arguments of either sides and finally dismissing the revenue’s appeal based on its division bench decision in Amarchand P Shah case, the Tribunal, headed by B.R. Baskaran, thus made the following observation :

          “I notice that the division bench has categorically held that the information received from Directorate of Income tax (investigation) cannot be considered to be an information received from an external source. In the instant case also, the 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. Accordingly, I reject the appeal of the revenue holding that the tax effect involved in the issues contested by the revenue is less than the monetary limits prescribed by the CBDT.”To Read the full text of the Order CLICK HERE

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