Low tax effect bars departmental appeal where the assessment computation falls below the prescribed monetary threshold.

Where the tax effect in a departmental appeal falls below the prescribed monetary threshold, the appeal is not maintainable and must be dismissed in terms of the applicable circular governing revenue appeals. The Tribunal held that the computation accompanying the assessment order, not the figure shown in Form No. 36, was ative of the tax effect, and that computation showed the demand to be below the limit. The Revenue's appeal was therefore dismissed for low tax effect.

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Issues: Whether the Revenue's appeal was liable to be dismissed on account of low tax effect.

Analysis: The tax effect, as reflected in the income-tax computation provided along with the assessment order, was below the monetary threshold prescribed for filing of departmental appeals. The Revenue's objection based on the figure shown in Form No. 36 did not alter the conclusion, since the computation accompanying the assessment order showed the demand to be below the limit. The dismissal was therefore warranted under the applicable circular governing departmental appeals.

Conclusion: The Revenue's appeal was not maintainable on account of low tax effect and was dismissed.

Ratio Decidendi: Where the tax effect in the appeal is below the prescribed monetary limit, the departmental appeal is not maintainable and must be dismissed.

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