CBDT monetary limit circular applies to pending ITAT appeals, requiring low-tax-effect Revenue appeals to be withdrawn.

A CBDT circular enhancing the monetary limit for departmental appeals before the ITAT was treated as applicable to pending appeals as well as appeals to be filed later. Where the tax effect fell below the revised threshold, the Revenue was required to withdraw or not press the appeal, subject to liberty to seek recall if the case fell within an exception or if the tax effect had been incorrectly computed. On that basis, the Revenue appeal was dismissed as withdrawn, and the connected cross-objection became infructuous.

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Issues: Whether the Revenue appeal was liable to be dismissed as withdrawn in view of the CBDT circular enhancing the monetary limit for departmental appeals and applying it to pending appeals.

Analysis: The appeal involved a tax effect below the revised monetary limit. The circular enhancing the monetary limit for appeals before the Tribunal was held applicable to pending appeals as well as appeals to be filed in future. Accordingly, appeals below the prescribed limit were required to be withdrawn or not pressed, with liberty reserved to seek recall in cases falling within exceptions or involving incorrect computation of tax effect.

Conclusion: The Revenue appeal was dismissed as withdrawn, and the connected cross-objection was treated as infructuous.

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