Measures for Reducing Litigation - Monetary Limits for Filing IT Appeals
BY Circular No.21/2015, dated 10.12.2015, the CBDT had instructed that Department should not file appeals in ITAT and High Courts if the tax effect does not exceed Rs. 10 lakhs and Rs. 20 lakhs respectively.
Now, there is a doubt if these instructions would apply to cross objections filed by the Department before the ITAT under section 253(4) of the Income-tax Act and to references to the High Court under sections 256(1) and 256(2) of the Act.
CBDT clarifies:
1. ITAT
a. The monetary limit of Rs. 10 lakhs for filing appeals before the ITAT would apply equally to cross objections under section 253(4) of the Act.
b. Cross objections below this monetary limit, already filed, should be pursued for dismissal as withdrawn/ not pressed.
c. Filing of cross objections below the monetary limit may not be considered henceforth.
2. High Court:
a. Similarly, references to High Courts below the monetary limit of Rs. 20 lakhs should be pursued for dismissal as withdrawn/ not pressed.
b. References below this limit may not be considered henceforth.
CBDT F.No.279/Misc./M-142/2007-ITJ(Part)., Dated: March 08 2016