CBDT monetary-limit circular controls maintainability of low-tax-effect appeals under the revised threshold.

Where a later CBDT circular supersedes earlier instructions and raises the monetary threshold without retaining the earlier revenue-audit objection exception, an appeal below the revised tax-effect limit cannot be continued on merits. The later circular was applied because the tax effect was below the revised limit of Rs. 2 crores, so the appeal was treated as not maintainable and disposed of in accordance with the binding monetary-limit instruction.

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Issues: Whether the appeal, whose tax effect was below the revised monetary limit, could survive in view of CBDT Circular No. 05 of 2024 and the earlier communication dated 20 August 2018.

Analysis: The earlier communication relied on by the Revenue contained an exception for cases where the department had accepted a revenue audit objection. That exception was not carried forward in Circular No. 05 of 2024. The revised circular also enhanced the monetary limit to Rs. 2 crores. Since the tax effect in the appeal was only Rs. 12,11,053/-, the appeal attracted the revised circular and could not be continued on merits. The earlier order was recalled to that extent and the matter was restored only to be disposed of in accordance with the revised circular.

Conclusion: The appeal was held to be not maintainable for want of the required tax effect and was disposed of accordingly.

Final Conclusion: The controversy was concluded on the basis of the binding monetary-limit circular then in force, leaving the substantive questions open.

Ratio Decidendi: Where a later CBDT circular supersedes earlier instructions and prescribes a higher monetary threshold without preserving the earlier exception, an appeal below the revised tax-effect limit is to be disposed of in accordance with the later circular.

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