Low tax effect appeals before the Tribunal are barred under CBDT's monetary limit instruction and dismissed as not maintainable.

Revenue appeals before the Tribunal are not maintainable where the tax effect falls below the monetary limit prescribed by CBDT Instruction No. 21 of 2015. On the record, the assessed income generated a tax effect below the applicable threshold for filing an appeal, and the Departmental instruction directed that such appeals should not be pursued. Applying that instruction to the present facts, the Tribunal treated the appeal as barred by the low tax effect limit and dismissed it as not maintainable.

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Issues: Whether the Revenue's appeal was maintainable in view of the low tax effect and the monetary limit prescribed by CBDT Instruction No. 21 of 2015.

Analysis: The assessed income resulted in a tax effect below the prescribed monetary limit of Rs. 10,00,000 for filing appeals before the Tribunal. The instruction relied upon by the Tribunal directed the Department not to file appeals where the tax effect did not exceed that limit, and it was applied to the present case on the basis of the record.

Conclusion: The appeal was held to be not maintainable and was dismissed.

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