Low tax effect bar under CBDT appeal limits led to dismissal of the revenue's appeal without merits review.

The article explains that departmental appeals are barred where the disputed tax effect falls below the CBDT's prescribed monetary limit. It notes that Circular No. 17/2019 and the clarification dated 20.08.2019 apply the revised limits to pending appeals as well, and that the circular is binding on tax . As no exclusion applied, the revenue's appeal was dismissed in limine for low tax effect without any examination of the merits.

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Issues: Whether the revenue's appeal was liable to be dismissed on account of low tax effect under CBDT Circular No. 17/2019 dated 08.08.2019 and the clarification dated 20.08.2019.

Analysis: The disputed tax effect was below the monetary limit prescribed for departmental appeals. The clarification dated 20.08.2019 made the revised limits applicable to pending appeals as well. The circular was treated as binding on the tax authorities, and no reason was shown to exclude the case from its operation.

Conclusion: The revenue's appeal was dismissed in limine for low tax effect without examination on merits.

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