Appeal dismissed as not pressed under CBDT Circular 6-8-2024 due to low tax effect below INR 5 crores

SC dismissed the revenue's appeal as not pressed on account of low tax effect. Both parties acknowledged that the dispute fell within the CBDT Circular dated 6 August 2024, which mandates withdrawal of appeals where the tax implication is below INR 5 crores. Holding the matter to be squarely covered by this monetary threshold for maintainability, the SC declined to examine the merits of the case and disposed of the appeal as non-maintainable due to low tax effect.

---

---

Appeal before the Supreme Court arising from a tax matter was not examined on merits in view of the Central Board of Direct Taxes policy on monetary limits for filing appeals. Both sides stated that the case is squarely covered by Circular dated 6 August 2024, which directs withdrawal of appeals where the "tax implication" is below ?5 crores. Accepting this, the Court dismissed the appeal as "not pressed on the ground of 'Low Tax Effect'." The Court expressly clarified that the "question of law, if any, is kept open," ensuring that the dismissal will not operate as a precedent on the substantive legal issues. All pending applications were disposed of accordingly.

---