Low tax effect limit bars departmental income tax appeal where tax liability falls below the prescribed threshold

Maintainability of departmental income tax appeals before the High Court was tested against the low tax effect monetary limit. As the tax liability in the matter was below Rs. 2 crore, the appeal fell within the applicable circular dated 17/09/2024 and the Tax Case was disposed of on that basis.

---

---

Outcome: The departmental tax appeal was disposed of in view of the revised monetary limit applicable to appeals before the High Court and the assessed tax effect being below the prescribed threshold.

---