CBDT monetary limit bars departmental appeal before ITAT when tax effect is below the prescribed threshold.

Departmental appeals before the ITAT are not maintainable where the tax effect falls below the CBDT's revised monetary limit under Circular No. 17 of 2019, subject to recognised exceptions. On the facts stated, the disputed tax effect was below the prescribed threshold, so the departmental appeal could not be entertained and was dismissed.

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Issues: Whether the departmental appeal was maintainable in view of the CBDT monetary limit for filing appeals before the Income Tax Appellate Tribunal.

Analysis: The appeal was tested against the revised monetary limit prescribed by the CBDT through Circular No. 17 of 2019, which enhanced the limit for appeals before the Tribunal to Rs. 50,00,000. The tax effect in the present appeal was found to be below that threshold. In such circumstances, the departmental appeal was not maintainable, subject to the stated exceptions in the circular.

Conclusion: The appeal was held to be not maintainable on account of low tax effect and was dismissed.

Final Conclusion: The departmental challenge could not be entertained because the disputed tax effect did not cross the revised monetary threshold fixed for appeals before the Tribunal.

Ratio Decidendi: A departmental appeal is not maintainable where the tax effect is below the applicable monetary limit prescribed by the CBDT, unless the case falls within a recognised exception.

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