Low tax effect threshold bars revenue appeal as ITAT dismisses matter under CBDT circular.

The revenue's appeal before the ITAT Visakhapatnam was held not maintainable because the tax effect was below the CBDT monetary threshold of Rs. 10 lakhs. The Tribunal therefore dismissed the appeal against the CIT(A)-1, Guntur order for assessment year 2008-09, applying the circular-based low tax effect bar without examining the merits.

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Issues: Whether the revenue's appeal was maintainable in view of the low tax effect and the CBDT circular governing monetary limits.

Analysis: The appeal involved a tax effect below the prescribed monetary limit. The applicable CBDT circular on monetary limits was treated as retrospective in operation, and therefore governed the pending appeal. As the circular barred such low-tax-effect appeals, the revenue's challenge could not be entertained.

Conclusion: The appeal was not maintainable and was dismissed.

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