Monetary limit circular and tax effect objections required fresh scrutiny of departmental appeal maintainability on remand.

The Bombay HC set aside the Tribunal's dismissal of the departmental appeal based on low tax effect and remanded the matter for fresh consideration. The Court noted that the Revenue's objection on tax effect and audit objection had not been examined, and it did not decide the merits of the controversy. The Tribunal was directed to reconsider maintainability afresh, including the assessee's reliance on the CBDT monetary-limit circular and the Revenue's objection to the appeal's admissibility. The question of whether the appeal was maintainable was therefore left open for determination by the Tribunal.

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Issues: Whether the Tribunal was in dismissing the departmental appeal on the basis of low tax effect and whether the maintainability of the appeal had to be reconsidered with reference to the CBDT circular on monetary limits.

Analysis: The Revenue's objection regarding the tax effect and audit objection had not been considered by the Tribunal. In view of the rival contentions, the Court did not decide the controversy on merits and instead set aside the impugned order. The parties were relegated to the Tribunal so that the question of maintainability could be examined afresh, including the assessee's reliance on the circular and the Revenue's stand on admissibility of the appeal.

Conclusion: The issue of maintainability was left for determination by the Tribunal on remand.

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