Enhanced monetary limit applies to pending departmental appeals when issued as a modification of earlier litigation policy.

An enhanced monetary limit for departmental appeals was treated as applicable to pending appeals because the later circular was read as a modification of the earlier litigation policy, which expressly extended to appeals already pending. The revised limit therefore rendered the revenue appeals below threshold not maintainable. Cross objections arising only from those appeals and supporting the lower appellate order were also dismissed as infructuous.

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Issues: Whether the CBDT circular enhancing the monetary limit for departmental appeals to Rs. 50,00,000 applied to appeals pending on the date of issuance, and whether the revenue appeals and connected cross objections were liable to be dismissed on that basis.

Analysis: The circular dated 08.08.2019 was held not to be a standalone instruction, but a modification of the earlier Circular No. 3 of 2018. The earlier circular contained the express stipulation that it applied both to appeals to be filed henceforth and retrospectively to pending appeals. Since the later circular only substituted the monetary limits and the related parity clause, while leaving the rest of the earlier circular intact, the enhanced monetary limit was treated as applicable to pending departmental appeals as well. The appeals before the Tribunal were below the revised monetary threshold, and the connected cross objections arose only out of those appeals and merely supported the CIT(A) order.

Conclusion: The enhanced monetary limit applied to the pending revenue appeals, which were therefore not maintainable, and the connected cross objections were also liable to be dismissed as infructuous.

Final Conclusion: The Tribunal treated the revised CBDT litigation policy as applicable to pending matters and disposed of the revenue appeals and the associated cross objections accordingly.

Ratio Decidendi: A CBDT circular enhancing the monetary limit for filing departmental appeals, when issued as a modification of an earlier circular that expressly governs pending appeals, applies to appeals already pending unless the later circular clearly excludes such application.

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