Low tax effect bars revenue appeal where CBDT monetary limits apply and no exception under the amended instructions exists.

Revenue appeals below the monetary limit in CBDT Circular No. 3/2018 are not maintainable, and the circular was treated as binding on tax authorities with retrospective effect for pending appeals. The appeal was also held to fall outside the later amended exceptions in para 10, including constitutional challenges, illegality of circulars or notifications, revenue audit objections, undisclosed foreign assets, external law-enforcement information, and pending prosecution. As the disputed tax effect was below the prescribed threshold and no exception applied, the appeal was dismissed in limine.

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Issues: Whether the revenue's appeal was liable to be dismissed for low tax effect under CBDT Circular No. 3/2018 dated 11.07.2018, and whether any exception in the amended instructions permitted the appeal to be heard on merits.

Analysis: The disputed tax effect was below the monetary limit prescribed by Circular No. 3/2018, which was stated to apply retrospectively to pending appeals and was treated as binding on the tax authorities. The case was also found not to fall within any of the exceptions later set out in the CBDT instructions amending para 10 of the circular, including challenges to constitutional validity, illegality of circulars or notifications, revenue audit objections, undisclosed foreign assets, external law-enforcement information, or pending prosecution.

Conclusion: The revenue's appeal was not maintainable on account of low tax effect and was dismissed in limine.

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