CBDT monetary limit bars departmental income-tax appeals where tax effect falls below the prescribed threshold and binds authorities.

Departmental income-tax appeals under Section 260-A were held not maintainable where the tax effect in each case was below the monetary limit prescribed by the binding CBDT circular. The High Court noted that Circular No. 1979 dated 27.3.2000 prohibited filing appeals where the tax effect did not exceed Rs. 2 lakhs, and the appeals in question fell below that threshold. On that basis, the departmental appeals were dismissed.

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Issues: Whether the departmental appeals were maintainable when the tax effect in each case was below the monetary limit prescribed by the CBDT circular.

Analysis: The appeals arose under Section 260-A of the Income-tax Act, 1961. The departmental monetary limit was governed by Circular No. 1979 dated 27.3.2000, which prohibited filing of appeals where the tax effect did not exceed Rs. 2 lakhs. The tax liability reflected in the appeals was below that limit, and the circular was binding on the departmental authorities.

Conclusion: The appeals were not maintainable and were dismissed.

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