CBDT monetary limit bars low-tax departmental appeals; connected cross objection falls away once the main appeal is non-maintainable.

CBDT's revised monetary limit for departmental appeals was treated as applicable to pending as well as future matters, so a Revenue appeal with tax effect below the prescribed threshold was not entertained on merits. The cross objection, being only supportive of the impugned order and not independently sustainable, ceased to survive once the Revenue appeal was held non-maintainable. The appeal was therefore dismissed in limine for low tax effect, and the cross objection was dismissed as infructuous.

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Issues: Whether the Revenue's appeal was maintainable in view of the CBDT circular enhancing the monetary limit for departmental appeals and whether the connected cross objection survived after dismissal of the Revenue's appeal.

Analysis: The appeal involved tax effect below the monetary limit prescribed by the CBDT circular. The circular dated 08.08.2019 was read as an amendment to the earlier litigation policy and as applicable not only to future appeals but also to pending appeals. Since the Revenue's appeal was hit by the monetary limit, it was not entertained on merits. The cross objection merely supported the order under challenge and did not survive independently once the Revenue's appeal was held non-maintainable.

Conclusion: The Revenue's appeal was dismissed in limine as not maintainable on account of low tax effect, and the assessee's cross objection was dismissed as infructuous.

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