TMI Blog2020 (3) TMI 1241X X X X Extracts X X X X X X X X Extracts X X X X ..... 20.08.2018 and the amended para 10 of Circular No. 3 of 2018 Even as per Circular No. 23 of 2019 dated 6th September, 2019 the exception is provided only in the cases where organized tax evasion is noticed through bogus long term capital/short term capital gain on penny stocks. Therefore, the said Circular cannot be applied in the cases when the addition is not in respect of capital gain on penny stocks. Accordingly, the said circular will not help the cases of the department. In the case in hand, the addition was made by the AO based on the information received from DIT (Investigation) of the Department which is not an external source in the nature of law enforcement agencies such as CBI/ED/DRI/SFIO/Director General of GST Intelligen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s only ₹ 90,713/-. Therefore, it is not exceeding the monetary limits prescribed by CBDT Circular No. 03 of 2018 dated 20-03-2018. 2.2 We have heard the ld. DR as well as ld.AR and also considered the relevant materials available on record. The ld. DR has submitted that this case of Revenue is covered under exception provided in clause 10 (e) of the CBDT Circular No. 3 of 2018 dated 20-08-2018 as the AO has made addition on the basis of information received from Investigation Wing, Mumbai. 2.3 On the other hand, the ld.AR of the assessee has submitted that appeal of the Revenue does not fall in the exception provided in the Circular as the report of the Investigation Wing, Mumbai is not an information of external law enforcement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or (d) Where addition relates to undisclosed foreign income/undisclosed foreign assets (including financial assets)/undisclosed foreign bank account. (e) 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). (f) Cases where prosecution has been filed by the Department and is pending in the Court. The relevant clause of para 10 is clause (e) which carves out the exception where the addition is based on the information received from external source as specified in the said clause. There is no dispute that the case of the assessees does not fall in the category of addition based on such information rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tivity. Therefore, even as per Circular No. 23 of 2019 dated 6th September, 2019 the exception is provided only in the cases where organized tax evasion is noticed through bogus long term capital/short term capital gain on penny stocks. Therefore, the said Circular cannot be applied in the cases when the addition is not in respect of capital gain on penny stocks. Accordingly, the said circular will not help the cases of the department. Thus we hold that the appeals filed by the revenue do not fall in the exception as provided in the amended para 10(e) of the Circular No. 3 of 2018. Accordingly, the appeal of the department is not maintainable being monetary limit is less than/not exceeding ₹ 50,00,000/-. In the case in hand, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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