CBDT monetary limit barred a departmental appeal with low tax effect, leading to dismissal without merits review.

CBDT monetary limit instructions restricted departmental appeals before the Tribunal to cases where the tax effect exceeded Rs. 25,000. An appeal filed after Instruction No. 1903, with tax effect below that threshold, was treated as not maintainable and dismissed without examination of the merits. The connected cross-objection also did not survive independently.

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Issues: Whether the departmental appeal was not maintainable in view of the CBDT monetary limit instruction because the tax effect was below the prescribed threshold.

Analysis: The appeal involved a tax effect below Rs. 25,000 and had been filed after the CBDT Instruction No. 1903 dated 28-10-1992, which revised the monetary limit for departmental appeals before the Tribunal to Rs. 25,000. The appeal was therefore treated as one that ought not to have been filed and was dismissed without examining the merits.

Conclusion: The departmental appeal was not entertained and stood dismissed on the basis of the monetary limit instruction.

Final Conclusion: The appeal failed on maintainability grounds arising from the low tax effect, and the connected cross objection did not survive independently.

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