CBDT monetary-limit policy renders low-tax-effect departmental appeals non-maintainable, and dependent cross objections fall away.

Pending departmental appeals falling below the CBDT-prescribed tax-effect threshold are to be withdrawn or not pressed under the litigation-management circulars, including the 08.08.2019 circular applying to pending matters. Where the tax effect in each appeal is below the prescribed limit, the appeal is treated as non-maintainable for departmental press purposes. Cross objections filed only in support of such appeals do not have an independent basis of survival once the underlying appeals are withdrawn and are therefore infructuous.

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Issues: Whether the Revenue appeals were not maintainable in view of the CBDT circular enhancing the monetary limit for filing appeals and whether the connected cross objections, filed only in support of the appellate orders, survived.

Analysis: The circular dated 08.08.2019 enhanced the monetary limits and was to be read with the earlier litigation-management circular. It expressly applied to pending appeals and permitted withdrawal or non-pressing of appeals below the specified tax effect. The tax effect in each appeal was below the prescribed threshold, and the connected cross objections arose only out of those appeals and did not raise an independent survival once the appeals were withdrawn.

Conclusion: The Revenue appeals were held to be not maintainable and were dismissed as withdrawn. The cross objections were dismissed as infructuous.

Final Conclusion: The litigation was concluded on the basis of the CBDT monetary-limit policy, with the departmental appeals taken out of consideration and the dependent cross objections falling away.

Ratio Decidendi: Pending departmental appeals below the prescribed tax-effect threshold are liable to be withdrawn or not pressed in accordance with the applicable CBDT circular, and dependent cross objections do not survive independently.

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