CBDT monetary limit barred the departmental appeal, so the Tribunal dismissed it without examining the addition on merits.

Departmental appeals before the Tribunal were held not maintainable where the tax effect fell below the CBDT monetary threshold under Instruction No. 1903 dated 28 October 1992, as the appeal was filed after that instruction took effect. The Tribunal followed its earlier view on the same point and dismissed the appeal without examining the merits of the addition relating to alleged unrecorded purchases or the material referred to under section 133(6) of the Income-tax Act, 1961.

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Issues: Whether the departmental appeal was maintainable in view of the CBDT monetary limit instruction and the low tax effect, without entering into the merits of the addition made on account of alleged unrecorded purchases.

Analysis: The tax effect in the appeal was below the monetary threshold prescribed by CBDT Instruction No. 1903 dated 28th Oct., 1992 for filing appeals before the Tribunal. The appeal had been filed after the issuance of that instruction. Following the Tribunal's earlier view on the same issue, the appeal was found not maintainable on account of the monetary limit, and the merits of the addition under section 133(6) of the Income-tax Act, 1961 were not examined.

Conclusion: The departmental appeal was dismissed as being barred by the monetary limit instruction, in favour of the assessee.

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