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TMI Blog2020 (9) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... - ITA No. 809/JP/2019 - - - Dated:- 3-6-2020 - Shri Vijay Pal Rao, JM And Shri Vikram Singh Yadav, AM For the Assessee : None For the Revenue : Ms Chanchal Meena (Addl. CIT) ORDER PER VIJAY PAL RAO, J.M. This appeal by the revenue is directed against the order dated 25th March, 2019 of ld. CIT (A)-1, Jaipur for the assessment year 2009-10. The revenue has raised the following grounds of appeal :- 1. Whether on the facts and circumstances of the case and in law the ld. CIT (A) was justified in restricting the addition of ₹ 2,32,500/- to ₹ 50,000/- of the bogus purchases disallowed by the AO following Hon ble Supreme Court s decision on bogus purchases in the case of Vijay Proteins Pvt. Ltd.? 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble on record. There is no dispute that the addition was made by the AO of ₹ 2,32,500/- on account of bogus/unverifiable purchases based on the information received from the Investigation Wing, Mumbai. The question arises whether this case falls in the exception provided in para 10(e) of the Circular No. 3/2018 or not. At the outset, we note that identical issue has been considered by this Tribunal vide order dated 13.03.2020 in the case of ITO vs. M/s. A.P. Gems in ITA No. 627/JP/2019 in para 2.4 as under :- 2.4 Having considered the rival submissions and carefully perusal of the record, at the outset, we note that identical issue has been considered by this Tribunal vide order dated 29-11-2019 in the case of DCIT vs Gehlot Moto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 received from external source as provided under clause (e) of the amended para 10 of the Circular No. 3 of 2018. Further, the ld. D/R has relied upon the Circular No. 23 of 2019 which further provides some exception to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, 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/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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