CBDT monetary limit circular applies to pending departmental appeals, making low-tax-effect appeals not maintainable.

CBDT Circular No. 17/2019 enhancing the monetary limit for departmental appeals was held applicable to pending appeals because Circular No. 3/2018 had already provided retrospective application of such instructions to pending matters and cross-objections. The later circular only revised the threshold and did not displace that retrospective clause. As the tax effect was below the revised limit, the departmental appeal was not maintainable and was dismissed in favour of the assessee.

---

---

Issues: Whether CBDT Circular No. 17/2019 enhancing the monetary limit for departmental appeals applies to pending appeals and requires dismissal of the present appeal for low tax effect.

Analysis: The enhanced circular was read with Circular No. 3/2018, which had already provided that the monetary-limit instructions would apply retrospectively to pending appeals and cross-objections. The later circular merely enhanced the monetary limits and did not displace the earlier retrospective application clause. On that basis, the appeal, involving tax effect below the revised monetary threshold, was not maintainable.

Conclusion: The circular applied to pending appeals and the departmental appeal was not maintainable; the dismissal was in favour of the assessee.

Ratio Decidendi: A CBDT circular enhancing monetary limits for departmental appeals applies to pending appeals where the earlier circular expressly made such instructions retrospectively applicable and the later circular only amended the monetary threshold.

---