CBDT monetary-limit exception under clause 10(e) held inapplicable where information came from the State Sales Tax Department.

Clause 10(e) of the CBDT monetary-limit circular was confined to additions based on information from external enforcement agencies such as CBI, ED, DRI, SFIO or DGGI. Information sourced from the Sales Tax Department of Maharashtra did not fall within that exception, so the departmental appeal could not rely on clause 10(e). The earlier dismissal of the tax case was therefore treated as consistent with the circular as amended by the later CBDT instruction, and the dismissal was upheld.

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Issues: Whether the exception in clause 10(e) of the CBDT circular relating to monetary limits for departmental appeals applied to the information on which the case was based, and whether the earlier dismissal of the tax case was correct.

Analysis: The circular's exception was read as covering cases where the addition is founded on information received from external sources in the nature of law enforcement agencies such as CBI, ED, DRI, SFIO, or DGGI. The information in the present matter had come from the Sales Tax Department of the State of Maharashtra and did not emanate from any of those agencies. On that basis, clause 10(e) was held inapplicable. The earlier dismissal of the tax case was therefore treated as consistent with the monetary-limit circular as amended by the later CBDT circular.

Conclusion: The exception under clause 10(e) did not apply, and the prior dismissal of the tax case was upheld.

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