The Central Board of Direct Taxes (CBDT) issued Circular No. 09/2024 on September 17, 2024, revising the monetary limits for filing appeals by the Department in income tax cases. This amendment to Circular 5/2024 aims to reduce litigation and provide clarity to taxpayers. The new monetary thresholds are set at Rs. 60 lakh for appeals before the Income Tax Appellate Tribunal (ITAT), Rs. 2 crore for High Courts, and Rs. 5 crore for Supreme Court cases. Earlier the limit was Rs. 50 lakh for appeals before the Income Tax Appellate Tribunal (ITAT), Rs. 1 crore for High Courts, and Rs. 2 crore for Supreme Court cases. These limits will apply to all cases, including those related to TDS and TCS under the Income-tax Act, 1961. Exceptions to these limits, outlined in Circular 5/2024, allow for appeals based on the merits of the case regardless of the tax amount involved. The circular emphasizes that appeals should not be filed solely due to exceeding the monetary limits but rather on the merits of the case, to avoid unnecessary litigation. The new limits take effect immediately and apply to both new and pending appeals in the ITAT, High Courts, and Supreme Court. The CBDT aims to ensure better litigation management and reduce the burden on courts while providing greater certainty in income tax assessments.
Circular No. 09/2024 | Dated: 17th September, 2024
F.No.279/Misc./M-74/2024-ITJ
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi
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Sub:- 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 5 of 2024- Measures for reducing litigation — Reg.
Reference is invited to Circular No 5/2024 (F.No.279/Misc.142/2007-ITJ(Pt.)) dated 15.03.2024 of Central Board of Direct Taxes (the ‘Board’) vide which monetary limits for filing of income tax appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLP/appeals before Supreme Court have been specified. Further, exceptions to the monetary limits were also specified vide paras 3.1 and 3.2 of the said Circular.
2. As a step towards management of litigation, it has been decided by the Board to revise the monetary limits for filing of appeals in Income-tax cases as stated in Para 4.1 of the aforementioned Circular as follows:
| Si. No. | Appeals/SLPs in Income-tax matters | Monetary Limit (Tax effect in Rs.) |
| 1. | Before Income Tax Appellate Tribunal | 60 lakh |
| 2. | Before High Court | 2 crore |
| 3. | Before Supreme Court | 5 crore |
3. Monetary limits given in paragraph 2 above with regard to filing appeal/SLP shall be applicable to all cases including those relating to TDS/TCS under the Income-tax Act, 1961 with exceptions as per paras 3.1 and 3.2 of Circular No 5/2024 dated 15.03.2024, where the decision to appeal/file SLP shall be taken on merits, without regard to the tax effect and the monetary limits.
4. It is clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case. The officers concerned shall keep in mind the overall objective of reducing unnecessary litigation and providing certainty to taxpayers on their Income-tax assessments while taking a decision regarding filing an appeal.
5. The modifications shall come into effect from the date of issue of this Circular. This Circular will apply to SLPs/appeals to be filed henceforth in SC/HCs/Tribunal. It shall also apply to the SLPs/ appeals pending before Supreme Court/High Courts/Tribunal, which may accordingly be withdrawn.
6. The above may be brought to the notice of all concerned.
7. This issues under section 268A of the Income-tax Act, 1961.
8. Hindi version will follow.
(Divya Chaudhary)
Deputy Secretary (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. The Comptroller and Auditor General of India.
4. ADG (Vigilance), New Delhi.
5. Joint Secretary & Legal Advisor, Ministry of Law & Justice. New Delhi.
6. All Directorates of Income-tax, New Delhi and Pr. DGIT(NADT), Nagpur.
7. Data Base Cell for uploading on gov.in.
8. Hindi Cell for translation.
9. Guard file.
(Divya Chaudhary)
Deputy Secretary (ITJ)
CBDT, New Delhi
