Low tax effect bar applied to dismiss the revenue appeal without examining the merits of cash deposit additions.

Revenue appeals falling below the monetary limit prescribed in CBDT Circular No. 17/2019 are not maintainable, and the Tribunal treated the present appeal as covered by that low-tax-effect bar. The disputed addition had earlier been deleted by the first appellate authority on the basis that cash deposits were either a genuine gift from the assessee's husband or business receipts eligible for presumptive taxation under section 44AD, but the Tribunal did not decide those merits. As the appeal fell within the circular's threshold, it was dismissed for low tax effect.

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Issues: Whether the revenue appeal was liable to be dismissed for low tax effect under the CBDT circular.

Analysis: The disputed addition had already been deleted by the first appellate authority on two counts, namely, cash deposits treated as a genuine gift from the assessee's husband and cash deposits regarded as business receipts covered by presumptive taxation under section 44AD. The Tribunal, however, did not adjudicate the merits of those additions for final relief and treated the appeal as falling within the monetary limit prescribed by CBDT Circular No. 17/2019 dated 08.08.2019.

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

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