Prospective CBDT exceptions cannot revive earlier appeals where revised monetary limits make the pending revenue appeal unsustainable

Revised CBDT monetary limits for departmental appeals apply to appeals pending when the revised circular takes effect. However, an exception introduced by a later circular operates prospectively and cannot be relied on to continue an appeal instituted before that exception came into force. Applying these principles, the revised limit governed the pending appeal, while the exception introduced on 15 March 2024 was unavailable to an appeal filed on 10 April 2023. The appeal was therefore disposed of because the tax effect fell below the prescribed monetary limit. The separate issue of whether the matter fell within the TDS/TCS exception was left undecided.

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Issues: Whether the revised monetary limit prescribed by the CBDT Circular dated 17.09.2024 applies to a pending revenue appeal, and whether an exception introduced later by the CBDT Circular dated 15.03.2024 can be invoked to continue an appeal filed before that exception came into force.

Analysis: The applicable legal framework was the CBDT regime governing monetary limits for departmental appeals and the exceptions carved out thereunder. The High Court followed its earlier precedents holding that revised monetary limits apply even to pending appeals. It also applied the settled position that exceptions introduced by later circulars operate prospectively and cannot validate prosecution of an appeal already filed before such exception was introduced. Since the appeal had been filed on 10.04.2023 and the exception relied upon by the Revenue was introduced only on 15.03.2024, that exception was unavailable for this appeal. The separate contention that the case did not fall within the TDS/TCS exception was expressly left open and not decided.

Conclusion: The revised monetary limit under the CBDT Circular dated 17.09.2024 governed the pending appeal, the later exception introduced on 15.03.2024 was inapplicable to an appeal already filed on 10.04.2023, and the appeal was therefore disposed of on the ground that the tax effect was below the prescribed monetary limit.

Ratio Decidendi: Revised CBDT monetary-limit circulars apply to pending departmental appeals, but exceptions introduced by a later circular operate only prospectively and cannot be invoked for appeals instituted before the date of such exception.

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