Low tax effect exception applied where reassessment stemmed from external information, leading to recall of dismissal.

The Tribunal recalled its earlier dismissal of the Revenue's appeal for low tax effect after accepting that the reassessment was triggered by information received from external sources. Material on record showed that the information came through the Sales Tax Department via DGIT (Investigation), including sworn statements. On that basis, the case was treated as falling within the exception in para 10(e) of the CBDT Circular, so the monetary limit did not bar consideration of the appeal. The Revenue's miscellaneous application was accordingly allowed and the prior dismissal order was set aside.

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Issues: Whether the Tribunal's earlier order dismissing the appeal on the ground of low tax effect was liable to be recalled on the footing that the case fell within the exception in para 10(e) of the CBDT Circular because the reassessment was based on information received from external sources.

Analysis: The Revenue produced material indicating that the reassessment was triggered by information forwarded from the Sales Tax Department through the DGIT (Investigation), including sworn statements forming part of the record. In view of that material, the Tribunal accepted that the earlier dismissal suffered from a mistake and that the case was covered by the exception to the monetary limit contained in para 10(e) of the CBDT Circular.

Conclusion: The order dismissing the appeal on low tax effect was recalled and the Revenue's miscellaneous application was allowed.

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