Low tax effect rule barred departmental appeal before ITAT, resulting in dismissal without merits review.

Tax effect below the CBDT monetary limit for departmental appeals before the ITAT led to dismissal of the Revenue's appeal without examination on merits. The stated tax effect was Rs. 91,615, which was below the applicable threshold under the relevant circular enhancing the appeal limit. On that basis, the Tribunal treated the appeal as not maintainable for low tax effect and dismissed it against the Revenue.

---

---

Issues: Whether the Revenue's appeal was liable to be dismissed on account of low tax effect under the CBDT monetary limit circulars.

Analysis: The tax effect in the appeal was stated to be Rs.91,615, which was below the monetary limit prescribed for departmental appeals before the Tribunal. The applicable CBDT circular enhanced the limit for filing appeals and, on that basis, the appeal was not examined on merits.

Conclusion: The appeal was dismissed for low tax effect and the result was against the Revenue.

---