Monetary threshold under litigation policy bars revenue appeals with sub-limit tax effect and leads to dismissal.

Revenue appeals are not to be pursued where the tax effect falls below the prescribed monetary threshold under the applicable litigation policy. Applying the Board's Litigation Policy Instruction dated 02.11.2023, the tribunal found that the amount involved was below the limit and held the appeal not maintainable. The revenue challenge was therefore dismissed, and the connected cross-objection was also disposed of. The operative principle is that a sub-threshold tax effect bars filing or continuation of the revenue appeal under the policy.

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Issues: Whether the revenue appeal was maintainable in view of the Government's litigation policy where the amount involved was below the prescribed monetary threshold.

Analysis: The amount involved was found to be less than Rs. 50 lakh. Under the Board's Litigation Policy Instruction dated 02.11.2023, the revenue is not to file an appeal where the monetary limit is not exceeded.

Conclusion: The appeal was not maintainable under the litigation policy and was dismissed. The connected cross-objection was also disposed of.

Final Conclusion: The revenue's challenge did not survive in view of the monetary limit applicable under the litigation policy, resulting in dismissal of the appeal.

Ratio Decidendi: Where the tax effect is below the prescribed monetary threshold under the applicable litigation policy, the revenue appeal is not to be pursued and is liable to be dismissed.

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