Low tax effect under CBDT appeal limits rendered the Revenue's Tribunal appeal not maintainable and dismissed.

The Revenue's right to file an appeal before the Tribunal was examined against CBDT Circular No. 3/2018 dated 11.07.2018, which prescribes a monetary threshold for tax appeals. As the tax effect in the matter was below the applicable limit of Rs. 20 lakhs, the appeal fell outside the permissible filing threshold. The Tribunal therefore treated the appeal as not maintainable and dismissed it on the ground of low tax effect.

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Issues: Whether the Revenue's appeal was maintainable in view of the CBDT circular prescribing a monetary limit for filing appeals where the tax effect was below the threshold.

Analysis: The appeal was tested against Circular No. 3/2018 dated 11.07.2018 issued by the CBDT. The tax effect in the appeal was found to be less than Rs. 20 lakhs, which fell below the prescribed limit for filing an appeal before the Tribunal.

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

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