CBDT monetary-limit circular bars low-tax-effect departmental appeals and renders related cross objections infructuous

CBDT's monetary-limit circular rendered departmental appeals non-maintainable where the tax effect fell below the prescribed threshold, and the circular was applied to pending appeals retrospectively. The Revenue's appeals were therefore dismissed as not maintainable and required to be withdrawn or not pressed. Because the assessee's cross objections only supported the CIT(A)'s orders, they did not survive once the main appeals were held non-maintainable and were dismissed as infructuous.

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Issues: Whether the Revenue appeals were maintainable in view of the CBDT circular prescribing a monetary limit for departmental appeals, and whether the assessee's cross objections survived once the Revenue appeals were found not maintainable.

Analysis: The appeals involved tax effect below the prescribed threshold. The circular relied upon made departmental appeals non-maintainable where the tax effect did not exceed the monetary limit and was stated to apply retrospectively to pending appeals. On that basis, the Revenue appeals were required to be withdrawn or not pressed and could not be entertained. Since the cross objections merely supported the orders of the CIT(A), they did not require separate adjudication once the main appeals were held non-maintainable.

Conclusion: The Revenue appeals were dismissed as not maintainable under the monetary-limit circular, and the assessee's cross objections were dismissed as infructuous.

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