Tax effect below CBDT monetary limit barred departmental appeals; pending appeals were dismissed as not maintainable.

CBDT Circular No. 21/2015 bars departmental appeals before the Tribunal where the tax effect does not exceed the prescribed monetary limit, and it applies retrospectively to pending appeals as well. Because the tax effect in each appeal was below the limit and no exception to the circular applied, the Revenue could not continue the appeals. The appeals were therefore not maintainable and were dismissed.

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Issues: Whether the Revenue's appeals were maintainable when the tax effect in each appeal was below the monetary limit prescribed by CBDT Circular No. 21/2015 dated 10.12.2015.

Analysis: The appeals related to different assessment years, but in each case the tax effect was admittedly below Rs. 10 lakhs. CBDT Circular No. 21/2015 provides that no departmental appeal should be filed before the Tribunal where the tax effect does not exceed the prescribed limit, and that the instruction applies retrospectively to pending appeals as well. The circular also directs that such pending appeals may be withdrawn or not pressed. Since none of the exceptions to the circular applied, the monetary limit barred continuation of these appeals.

Conclusion: The Revenue's appeals were not maintainable and were dismissed.

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