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2020 (2) TMI 1545 - ITAT MUMBAIMaintainability of appeal - Monetary limit - Low tax effect - as per DR additions were made on account of accommodation unsecured loans pursuant to search action being carried out by DGIT (Investigation) in the case of Shri Bhanwar Lal Jain group of cases and therefore, factual matrix was covered by exception provided in CBDT Circular No. 23 of 2019 dated 06/09/2019 read with office memorandum dated 16/09/2019 - HELD THAT:- The tax effect being contested by the revenue is less than prescribed limit of ₹ 50 Lacs and the same is covered by recently issued low tax effect Circular No.17/2019 dated 08/08/2019 issued by Central Board of Direct Taxes [CBDT]. This recent circular further enhances the monetary limit fixed in earlier Circular No.3 of 2018 dated 11/07/2018 issued by CBDT as amended on 20/08/2018. Undisputedly, the factual matrix is not covered by any of the exceptions as provided in para-10 of Circular no. 3 of 2018 dated 11/07/2018. The co-ordinate bench of this Tribunal in ITO V/s Late Shri Amarchand P.Shah [2019 (8) TMI 1402 - ITAT MUMBAI] has already held that Directorate of Income Tax (investigation) is a law enforcement agency under the control of Ministry of Finance and would thus constitute internal agency / wing of Income Tax Department which works under the aegis of its controlling authority CBDT and therefore, the same could not be considered as ‘external source’ as is referred to in para 10(e) of CBDT circular dated 20/08/2018. No contrary decision is on record. So far as the exceptions as provided in subsequent CBDT Circular No. 23 of 2019 dated 06/09/2019 read with office memorandum dated 16/09/2019 is concerned, upon perusal of the same, we find that the same applies only to cases involving bogus long term capital gains (LTCG) / Short Term Capital Loss (STCL) through penny stocks and do not apply to the cases of accommodation unsecured loans. As gone through the circulars and find that the tax effect in dispute is below prescribed limit of ₹ 50 Lacs and the assessee stood benefitted by the above circular issued by CBDT wherein the minimum monetary limit for filing the appeals before various appellate authorities have been fixed - The aforesaid limits, as per para 13 of the Circular no. 3 of 2018 dated 11/07/2018, applies to pending appeals also. In view of the same, we dismiss the revenue’s appeal.
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