CBDT monetary limit bars departmental ITAT appeals where tax effect falls below the revised threshold.

Departmental appeals before the ITAT are restricted by the CBDT's monetary limit policy. Here, the tax effect was below the revised threshold of Rs. 50,00,000 under CBDT Circular No. 17/2019, which increased the limit from the level prescribed in Circular No. 3/2018. As the appeal did not meet the applicable monetary threshold for filing, it was treated as not maintainable and liable to dismissal for low tax effect.

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Issues: Whether the departmental appeal was maintainable in view of the CBDT monetary limit for filing appeals before the Income Tax Appellate Tribunal.

Analysis: The tax effect in the appeal was found to be below the revised monetary limit of Rs. 50,00,000 prescribed by CBDT Circular No. 17/2019 dated 08.08.2019, which enhanced the threshold from the limit set under Circular No. 3/2018 dated 11th July 2018. The appeal therefore did not satisfy the monetary threshold for departmental appeals before the Tribunal.

Conclusion: The appeal was not maintainable and was liable to be dismissed on account of low tax effect.

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