Low tax effect dismissal may be recalled when the factual tax effect was misstated beyond the CBDT circular limit.

A tax appeal dismissed for low tax effect can be reviewed and recalled where the dismissal rests on an incorrect factual premise about the applicable monetary limit under CBDT Circular No. 3/2018. The court accepted that the earlier tax effect figure had been shown by mistake and that the actual tax effect was materially higher, taking the case outside the circular's threshold. That factual error constituted an error apparent on the face of the record, so the review was allowed, the dismissal order was recalled, and the appeal was restored for hearing by the appropriate Bench.

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Issues: Whether the order dismissing the tax appeal for low tax effect could be reviewed and recalled on the ground that the actual tax effect exceeded the monetary limit prescribed in Circular No. 3/2018 dated 11.07.2018.

Analysis: The appeal had earlier been dismissed solely because the tax effect was stated to be below the monetary threshold under the CBDT circular. In the review proceedings, the applicant demonstrated that the actual tax effect was substantially higher and that the earlier figure had been shown by mistake. Since the dismissal rested on an incorrect factual basis regarding the applicability of the circular, the earlier order suffered from an error apparent on the face of the record.

Conclusion: The review was allowed, the earlier order was recalled, and the appeal was restored to its file for consideration by the appropriate Bench.

Ratio Decidendi: An order dismissing a tax appeal for low tax effect can be reviewed and recalled where the dismissal is shown to rest on an factual premise that takes the case outside the monetary limit prescribed by the applicable CBDT circular.

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