Tax effect threshold governs maintainability when no recognised CBDT circular exception is actually made out.

A revenue appeal with tax effect below the prescribed monetary threshold was held not maintainable because the asserted CBDT circular exception was not made out on the record. The Court found that the Tribunal had not dealt with, relied on, or declared any board circular, notification, instruction, or order illegal or ultra vires, and therefore the case did not fall within the recognised exception. It also noted that the Tribunal had no jurisdiction to declare a circular ultra vires in the manner suggested by the revenue. The appeal was dismissed, while the substantive questions of law were left open.

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Issues: (i) Whether the revenue appeal was maintainable in view of the tax effect and the exception under the CBDT circular.

Analysis: The appeal involved a tax effect below the prescribed monetary threshold. The Court found that the Tribunal had not dealt with, relied upon, or declared any board circular, notification, instruction, or order to be illegal or ultra vires, and therefore the case did not fall within the asserted exception. The Court also noted that the Tribunal had no jurisdiction to declare a circular ultra vires in the manner suggested by the revenue.

Conclusion: The appeal was not maintainable on the ground urged and was dismissed.

Final Conclusion: The revenue's challenge did not survive, while the substantive questions of law were left open.

Ratio Decidendi: Where the tax effect is below the monetary limit, an appeal can proceed only if the case genuinely falls within a recognised exception under the CBDT circular, and a bare assertion that a circular is illegal or ultra vires is insufficient unless such issue was actually decided below.

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