Monetary limits for filing of appeals by Income Tax Department further enhanced by CBDT

There is a substantial pendency of appeals of the Income Tax Department before various appellate fora. The CBDT is aware of the importance of litigation management and has been continuously working towards achieving the same.

To effectively reduce taxpayer grievances/litigation and help the Department focus on litigation involving complex legal issues and high tax effect, the monetary limits for filing of appeals by the Department were last revised on 11th July,2018 vide CBDT Circular No.3 of 2018. As a step towards further management of litigation by the Government,  the monetary limits for filing Departmental appeals before various appellate fora including ITAT, High Court & Supreme Court have been revised as under:

Appellate Forum Existing Monetary Limit (Rs.) Revised Monetary Limit (Rs.)
Before Income Tax Appellate Tribunal 20,00,000 50,00,000
Before High Court 50,00,000 1,00,00,000
Before Supreme Court 1,00,00,000 2,00,00,000

This will further reduce time, effort and resources presently deployed in litigation to focus on issues involving litigation of substantial value.

Circular No. 17/2019-Income Tax

F. No. 279/Misc. 142/2007-ITJ(Pt.)
Government of India
Ministry of Finance
Department of Revenue
Central Board Direct Taxes
Judicial Section

New Delhi, 8th August 2019

Subject: – Further Enhancement of Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court – Amendment to Circular 3 of 2018 – Measures for reducing litigation.

Reference is invited to the Circular No. 3 of 2018 dated 11.07.2018 (the Circular) of Central Board of Direct Taxes (the Board) and its amendment dated 20th August, 2018 vide which monetary limits for filing of income tax appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court have been specified. Representation has also been received that an anomaly in the said circular at para 5 may be removed.

2. As a step towards further management of litigation, it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows:

S.No. Appeals/SLPs in Income-tax matters Monetary Limit (Rs.)
1. Before Appellate Tribunal 50,00,000
2. Before High Court 1,00.00,000
3. Before Supreme Court 2,00,00,000

3. Further, with a view to provide parity in filing of appeals in scenarios where separate order is passed by higher appellate authorities for each assessment year vis-à-vis where composite order for more than one assessment years is passed, para 5 of the circular is substituted by the following para:

5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If, in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit specified in para 3. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary’ limit specified in para 3. Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In case where a composite order/ judgement involves more than one assessee„ each assessee shall be dealt with separately.”

4. The said modifications shall come into effect from the date of issue of this Circular.

5. The same may be brought to the notice of all concerned.

6. This issues under section 268A of the Income-tax Act,1961.

7. Hindi version will follow.

(Neetika Bansal)
Director, (ITJ)
CBDT, New Delhi

Copy to:

1. Chairman, Members and all other officers .in CBDT of the rank of Under Secretary and above.

2. All Pr. Chief Commissioners of Income Tax and all Directors General of Income Tax with a request to bring to the attention of all officers.

3. ADG(PR,P&P), Mayur Bhawan, New Delhi for printing in the quarterly Tax Bulletin and for circulation as per usual mailing list.

4. The Comptroller and Auditor General of India.

5. ADG (Vigilance), Mayur Bhawan, New Delhi.

6. Joint Secretary & Legal Advisor, Ministry of Law & Justice, New Delhi.

7. All Directorates of Income-tax, New Delhi and Pr. DGIT(NADT), Nagpur.

8. ITCC (3 copies).

9. ADG (System)-4, for uploading on the Department’s website.

10. Data Base Cell for uploading on irsofficersonlinegov.in.

11. njrs_support@nsdl.co.in for uploading on NJRS.

12. Hindi Cell for translation.

13. Guard file.

(Neetika Bansal)
Director, (ITJ)
CBDT, New Delhi

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