Low tax effect appeals are not maintainable before the Tribunal when CBDT's revised monetary limit is not met.

The Revenue's appeal before the ITAT was held not maintainable because the tax effect fell below the monetary threshold prescribed in CBDT Circular No. 17 of 2019. The circular enhanced the limit for filing appeals before the Tribunal, and the appeal did not meet that revised maintainability requirement. As a result, the Tribunal dismissed the appeal in line with the applicable low-tax-effect policy.

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Issues: Whether the Revenue's appeal was maintainable in view of the CBDT circular enhancing the monetary limit for filing appeals before the Tribunal.

Analysis: The tax effect involved in the appeal was below the revised monetary limit of Rs. 50 lakhs prescribed by Circular No. 17 of 2019 dated 08.08.2019. In view of the enhanced threshold, the appeal did not satisfy the requirement for maintainability before the Tribunal.

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

Ratio Decidendi: Where the tax effect is below the monetary limit fixed by the applicable CBDT circular, the appeal is not maintainable before the Tribunal.

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