Low tax effect limits departmental ITAT appeals under CBDT circular, rendering non-maintainable appeals infructuous.

The Tribunal note states that departmental appeals before the ITAT are subject to the CBDT's revised monetary limit in Circular No. 17/2019, which raised the threshold to Rs. 50,00,000 and was treated as applicable to pending appeals. Where the tax effect in the disputed assessment does not exceed that limit, the Revenue should not pursue the appeal. On that basis, the appeal was described as not maintainable for low tax effect and liable to be dismissed as infructuous.

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Issues: Whether the Revenue's appeal was not maintainable due to low tax effect under the CBDT circular and liable to be dismissed as infructuous.

Analysis: The tax effect involved in the appeal was below the revised monetary limit prescribed for departmental appeals before the Tribunal under CBDT Circular No. 17/2019 dated 08.08.2019, which enhanced the limit to Rs. 50,00,000 for appeals before the Appellate Tribunal. The circular was treated as applicable to pending appeals, and the disputed assessment fell within the category where no departmental appeal should be pursued because the tax effect did not exceed the prescribed limit.

Conclusion: The Revenue's appeal was held to be not maintainable on account of low tax effect and was dismissed as infructuous.

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