Low tax effect dismissal recalled after the actual tax effect exceeded the CBDT monetary threshold

An earlier departmental appeal dismissal based on low tax effect was recalled because the actual tax effect was above the monetary threshold prescribed in the CBDT circulars. The Tribunal treated the earlier disposal as an inadvertent mistake apparent from the record, arising from an erroneous factual premise on the applicable limit. The prior order was therefore recalled and the departmental appeal restored for hearing on merits.

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Issues: Whether the earlier appellate order dismissing the Department's appeal on the basis of low tax effect required recall because the tax effect exceeded the monetary limit prescribed by the CBDT circulars.

Analysis: The order records that the departmental appeal was earlier dismissed by treating the tax effect as below the prescribed limit, whereas the actual tax effect was stated to be above the monetary threshold. The Tribunal treated this as an inadvertent mistake apparent from the record and accepted that the prior disposal had proceeded on an erroneous factual premise regarding the applicable monetary limit under the CBDT circulars.

Conclusion: The earlier order was recalled and the departmental appeal was restored for hearing on merits.

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