CBDT Revising Monetary Limits for filing of Appeals By CA Ashish Kumar Agrawal


Central  Board of Direct Taxes has issued circular on 11th July 2018  were in the monetary limits for the filing of appeals by the Income-tax department before Income Tax Appellate Tribunal, High Court and Supreme Court has been revised as a measure for reducing litigation.

Henceforth, Appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder:

S. No.

Appeals/SLPs in Income Tax matters

Monetary limits(Rs)

1.

Before Appellate Tribunal

2000000

2.

Before High Court

5000000

3.

Before Supreme Court

10000000

 
It was also stated that appeal should not be filed nearly because the tax effect in a case exceeds the aforesaid monetary limit. Merits of the case have to be seen before the filing of the appeal. Tax effect includes tax, applicable surcharge and cess and excludes any interest thereupon.  In case of penalty order, the tax effect will mean quantum of penalty deleted or reduced in the ordered to be appealed.

Tax effect shall be calculated separately for every assessment year for each assessee. In case of involvement of more than assessment years appeal shall be filed only with reference to the tax effect in the relevant assessment year.

However, in case of a composite order which involves common issues in more than one assessment year, appeals shall be filed in respect of all such assessment years even if the tax effect is less than the aforesaid monetary limit in any of the year. If it is decided to file an appeal in respect of the year in which tax effect exceeds the aforesaid monetary limit.

CBDT has specified certain conditions wherein the aforesaid monetary limit shall not apply and revenue shall contest such cases on merits:-

(a) Where the constitutional validity of the provisions of an Act or Rule is under challenge, or

(b)Where Board’s order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or

(c) Where Revenue Audit objection in the case has been accepted by the Department, or

(d)Where the addition relates to undisclosed foreign assets/ bank accounts.

This Circular will apply to SLPs/ appeals/ cross objections/ references to be filed henceforth in SC/ HCs/ Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/ cross objections/ references. 

Pending appeals below the specified tax limits may be withdrawn/ not pressed.

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