CBDT monetary limit for departmental appeals before ITAT bars filing where tax effect falls below the prescribed threshold.

Departmental appeals before the ITAT are not maintainable where the tax effect falls below the CBDT's revised monetary threshold of Rs. 50,00,000 under Circular No. 17/2019, which replaced Circular No. 3/2018. The document states that the appeal in question was covered by this litigation-reduction policy because the tax effect was below the prescribed limit, and it therefore did not satisfy the filing threshold. On that basis, the appeal was dismissed as not maintainable for low tax effect.

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Issues: Whether the departmental appeal was maintainable in view of the monetary limit prescribed by the CBDT circular governing appeals before the Income Tax Appellate Tribunal.

Analysis: The tax effect in the appeal was below the revised monetary limit of Rs. 50,00,000 prescribed for departmental appeals before the Tribunal by Circular No. 17/2019 dated 08.08.2019, which replaced Circular No. 3/2018 dated 11th July 2018. The appeal therefore did not satisfy the threshold for filing and was covered by the litigation-reduction policy reflected in the circular.

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

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