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ITO v. Nidhi Premises Pvt. Ltd. ( Mum) (Trib) (UR) www.itatonline .org

S. 253 : Appellate Tribunal – Monetary limits – CBDT Circular – Information received from DIT(Investigation) being an internal wing of Income Tax department cannot be treated as an external source and hence not covered by exception to Circular – Circular No 17/ 2029 dt 8 -8 -2019 ( 2019) 416 ITR 106 (St) – Circular No 23/2019 dt 16 -9- 2019 ( 2019) 417 ITR 4 (St) applies only to capital gains on penny stocks and not to share application money [ S.45 , 68 ]

Dismissing the appeal of the revenue the Appellate Tribunal held that for the purpose of exceptions to low tax effect Circular No. 17/2019 dt.  8.- 8- 2019 issued by CBDT  ( 2019) 416 ITR 106 (St)
1. Information received from DIT(Investigation) being an internal wing of Income Tax department cannot be treated as an external source and hence not covered by exception to Circular.
2. Circular No. 23/2019 r.w. OM dt.  16.09.2019  ( 2019) 417 ITR 4 (St) applies only to capital gains on penny stocks and not to share application money.  Followed, ITO  v  Late Shri Amarchand P.Shah (ITA No.818-820/Mum/2017 dated 08/07/2019) ( ITA No . 3607 /Mum/ 2017 dt -5-2 -2020 ( AY. 2007 -08)

 

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