CBDT monetary threshold bars departmental appeals before the Tribunal where tax effect is below the prescribed limit.

A departmental appeal before the Tribunal is barred where the tax effect, excluding interest, falls below the monetary limit prescribed by the applicable CBDT instruction. The text states that CBDT Instruction No. 3 of 2011 fixed a threshold of Rs. 3 lakhs for Revenue appeals before the Tribunal, and the tax payable in the present matter was below that limit. On that basis, the Revenue's appeal was treated as not maintainable and dismissed. The operative principle is that the monetary threshold under the CBDT litigation policy governs maintainability of departmental appeals at the time of filing.

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Issues: Whether the Revenue's appeal was maintainable in view of the CBDT instruction prescribing a monetary threshold for filing departmental appeals before the Tribunal.

Analysis: The appeal involved a tax effect below the prescribed limit of Rs. 3 lakhs under CBDT Instruction No. 3 of 2011 dated 9 February 2011. The instruction bars the Revenue from preferring appeals before the Tribunal where the tax effect, excluding interest, is below the prescribed monetary limit. Since the tax payable in the present appeal was below that threshold, the appeal was not maintainable.

Conclusion: The Revenue's appeal was not maintainable and was dismissed.

Ratio Decidendi: A departmental appeal before the Tribunal is not maintainable where the tax effect, excluding interest, is below the monetary limit prescribed by the CBDT instruction applicable at the time of filing.

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