CBDT monetary limit rules bar departmental appeals below the tax effect threshold where no exception applies.

CBDT monetary limit instructions applied to pending departmental appeals, so the Revenue's appeal was barred where the tax effect was below the prescribed threshold and no stated exception applied. Section 268A of the Income-tax Act, 1961 confirmed the binding character of those monetary limit directions for departmental litigation. On that basis, the appeal was held not maintainable and was dismissed for low tax effect.

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Issues: Whether the Revenue's appeal was maintainable in view of the CBDT monetary limit circular applicable to pending appeals, and whether the case fell within any exception permitting the appeal to proceed.

Analysis: The tax effect on the issue under appeal was below the prescribed monetary limit of Rs. 50 lakhs. The circular was held applicable retrospectively to pending appeals, and the matter was found not to fall within any of the stated exceptions. Section 268A of the Income-tax Act, 1961 supported the binding character of the monetary limit instructions for departmental appeals.

Conclusion: The appeal of the Revenue was not maintainable and was dismissed due to low tax effect.

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