CBDT Enhances Monetary Limits for Appeals - Retrospectively
CBDT has decided that Departmental appeals may be filed on merits before Appellate Tribunal, High Courts and Supreme Court keeping in view the monetary limits and conditions specified.
Now appeals shall not be filed in cases where the tax effect does not exceed the monetary limits as: -
S.No. | Appeals in Income-tax matters | Earlier Monetary Limit (in Rs) | Newly Fixed Monetary Limit (Rs) |
|---|---|---|---|
1. | Before Appellate Tribunal | 4,00,000/- | 10,00,000 |
2. | U/s 260 A before High Court | 10,00,000/- | 20,00,000 |
3. | Before Supreme Court | 25,00,000/- | 25,00,000 |
Adverse judgments relating to the following issues would be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits.
1. Where the Constitutional validity of the provisions of an Act or Rule are under challenge, or
2. Where Board's order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or
3. Where Revenue Audit objection in the case has been accepted by the Department, or
4. Where the addition relates to undisclosed foreign assets/ bank accounts.
This instruction will apply retrospectively to pending appeals and appeals to be filed henceforth in High Courts/ Tribunals. Pending appeals below the specified tax limits are directed to be withdrawn/ not pressed.
Will CBEC follow suit?
CBDT Circular No. 21/2015., Dated: December 10, 2015