Monetary limit for tax appeals applies to pending matters, leading to dismissal where tax effect fell below the threshold.

A tax appeal below the prescribed monetary threshold was held not maintainable because the binding departmental instruction fixing a tax effect limit of Rs. 10 lakh applied even to pending appeals. The Court therefore declined to entertain the appeal and dismissed it. As the appeal was not heard on merits, the consequential substantial questions of law were not separately adjudicated and were treated as answered in favour of the assessee and against the Revenue.

---

---

Issues: Whether a tax appeal below the prescribed monetary limit was maintainable and whether the monetary limit instruction applied to pending appeals.

Analysis: The appeal was considered in the light of the binding precedent holding that the departmental instruction fixing a tax effect threshold of Rs. 10 lakh governed even pending appeals. Since the tax appeal fell below that limit, the Court declined to entertain it. The consequential substantial questions of law were not separately adjudicated on merits and were treated as answered in the assessee's favour.

Conclusion: The tax appeal was not maintainable and was dismissed. The questions of law stood answered in favour of the assessee and against the Revenue.

---