Revenue's appeal dismissed due to monetary limit, lack of merit, and adherence to legal provisions.

The Tribunal dismissed the revenue's appeal, citing the monetary limit, lack of merit in the revenue's contentions, and the necessity to adhere to legal precedents and provisions of the IT Act, 1961. The decision was based on a thorough analysis and application of relevant legal principles and judicial pronouncements.

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Issues:
1. Whether the assessment made by the A.O. was treated as infructuous by the ld. CIT(A) without considering the provisions of the IT Act, 1961Rs.
2. Whether the tax effect in the present appeal is below the prescribed monetary limit, justifying the dismissal of the revenue's appealRs.
3. Whether the learned first appellate authority erred in directing the Assessing Officer to allow carry forward of brought forward losses of earlier years without sufficient basisRs.

Analysis:
1. The first issue revolves around the treatment of the assessment by the A.O. as infructuous by the ld. CIT(A). The Tribunal, after considering the facts and circumstances, found that the income assessed was Rs. 1,37,880/- with a tax involved of Rs. 40,611/- only. The Tribunal, relying on a previous decision, dismissed the revenue's appeal based on the primary objection of the monetary limit, supported by relevant provisions of the IT Act, 1961.

2. The second issue focuses on the tax effect being below the prescribed monetary limit. In various cases, including the one under consideration, it was observed that the tax effect was below the limit for filing an appeal before the Tribunal. The Tribunal, following precedents and clarifications on tax effect, dismissed the revenue's appeal without delving into the merits of the case, as the tax effect was below the prescribed limit.

3. The third issue pertains to the direction given by the learned first appellate authority to allow carry forward of brought forward losses of earlier years. The Tribunal analyzed the contentions of both sides and found that the assessee had duly filed returns in previous years, supporting the allowance of carry forward losses. Citing relevant judicial pronouncements, the Tribunal affirmed the decision of the learned CIT(A) and dismissed the revenue's appeal, emphasizing the duty of the Assessing Officer to apply relevant provisions for determining the true taxable income.

In conclusion, the Tribunal dismissed the revenue's appeal on all issues, considering the monetary limit, lack of merit in the revenue's contentions, and the need to follow legal precedents and provisions of the IT Act, 1961. The decisions were based on detailed analysis and application of relevant legal principles and judicial pronouncements.

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