Prospective application of CBDT exceptions bars Revenue from using new circular exceptions to continue pending appeals.

CBDT Circular No. 05/2024 was read with the earlier circular to distinguish between enhanced monetary limits, which were expressly made applicable to pending appeals, and newly introduced exceptions, which were held to operate prospectively for appeals to be filed later. The Revenue could not invoke those new exceptions to continue pending appeals, and the appeals were to be disposed of in accordance with the circulars. The Bombay HC followed a prior coordinate bench view and the Rajasthan High Court on the same question, confirming that the later exception regime did not extend to already pending matters.

---

---

Issues: Whether the exceptions introduced in CBDT Circular No. 05/2024 dated 15 March 2024 could be invoked by the Revenue to prosecute pending appeals despite the monetary limit for pending matters and the later circular applying enhanced limits to pending appeals.

Analysis: The circulars were read together and were held to draw a clear distinction between the enhanced monetary limits, which were expressly made applicable to pending appeals, and the newly introduced exceptions, which were intended to operate prospectively for appeals to be filed henceforth. The later exception could not be used to justify continuation of pending appeals. The prior coordinate bench view and the Rajasthan High Court view were followed on the same question.

Conclusion: The Revenue could not rely on the newly introduced exceptions to continue these pending appeals, and the appeals were liable to be disposed of in accordance with the circulars.

---