CBDT monetary limit for departmental appeals bars ITAT review where tax effect falls below the prescribed threshold.

CBDT monetary limit instructions govern the maintainability of departmental appeals before the ITAT, and such circulars are treated as binding on the Revenue, including in pending matters. Where the tax effect is below the prescribed threshold, the appeal should not be entertained. The commentary applies this policy to an appeal against deletion of additions under sections 68 and 69C of the Income-tax Act, noting that the stated tax effect was below Rs. 2 lakhs. The appeal was therefore dismissed in limine as falling outside the monetary limit for departmental litigation.

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Issues: Whether the revenue appeal was liable to be entertained in view of the CBDT instructions prescribing monetary limits for departmental appeals where the tax effect was below the prescribed threshold.

Analysis: The appeal challenged deletion of additions made under sections 68 and 69C of the Income-tax Act, 1961, but the tax effect was stated to be less than Rs. 2 lakhs. The Board's instruction fixing monetary limits for appeals before the Tribunal was relied upon as a binding policy measure intended to reduce litigation. The order also referred to judicial recognition that such circulars bind the revenue and apply to pending matters.

Conclusion: The appeal was not to be entertained and was dismissed in limine as the tax effect was below the prescribed monetary limit.

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