CBDT monetary limit for departmental appeals barred maintainability where tax effect was below the prescribed threshold.

The Revenue's appeal before the ITAT was not maintainable because the tax effect was below the CBDT's enhanced monetary limit of Rs. 50 lakhs for departmental appeals. The Tribunal applied Circular No. 17/2019 dated 8 August 2019, read with the clarification dated 20 August 2019 extending the limit to pending appeals, and held that the appeal did not meet the prescribed threshold. The appeal was therefore dismissed.

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Issues: Whether the Revenue's appeal was maintainable in view of the CBDT monetary limit for filing appeals where the tax effect was below Rs. 50 lakhs.

Analysis: The tax effect involved in the grounds raised by the Revenue was admittedly below Rs. 50 lakhs. The Tribunal applied CBDT Circular No. 17/2019 dated 8th August, 2019, which enhanced the monetary limit for filing departmental appeals before the Tribunal to Rs. 50 lakhs, together with the subsequent clarification dated 20th August, 2019 making the circular applicable to pending appeals as well. On that basis, the appeal did not satisfy the maintainability threshold.

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

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