CBDT monetary limit for Tribunal appeals applies to pending matters, making low-tax-effect Revenue appeals non-maintainable.

CBDT's revised litigation policy increased the monetary limit for departmental appeals before the Tribunal to Rs. 50 lakhs and stated that the amended threshold applies to pending appeals as well. The earlier circular continues only to the extent it is not inconsistent with the revision, and the 20.08.2019 clarification reaffirmed application to pending matters. Where the tax effect is below the prescribed limit, the appeal falls within the category barred by the departmental appeal instructions and is not maintainable; the Revenue's appeal was dismissed on that basis.

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Issues: Whether the Revenue's appeal was not maintainable in view of the CBDT's revised monetary limit for filing appeals before the Tribunal, and whether the appeal was liable to be dismissed on account of low tax effect.

Analysis: The revised CBDT instruction enhanced the monetary limit for departmental appeals before the Tribunal to Rs. 50 lakhs and clarified that the amended limit would apply to pending appeals as well. The earlier circular continued to operate except to the extent amended, and the clarification issued on 20.08.2019 reiterated application to pending matters. As the tax effect in the present appeal was below the prescribed threshold, the appeal fell within the category barred by the litigation policy instructions.

Conclusion: The Revenue's appeal was held to be non-maintainable and was dismissed because the tax effect was below Rs. 50 lakhs.

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