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CBDT enhances monetary limits for filing of appeals by Income Tax Department

CBDT said that there is a substantial pendency of appeals of the Income Tax Department before various appellate fora, adding that it is aware of the importance of litigation management and has been continuously working towards achieving the same.

CBDT enhances monetary limits for filing of appeals by Income Tax Department

New Delhi: In a bid to reduce litigations, the Central Board of Direct Taxes (CBDT) has enhanced the monetary limits for the filing of appeals by the Income Tax Department at various tribunals.

CBDT said that there is a substantial pendency of appeals of the Income Tax Department before various appellate fora, adding that it 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. 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,” CBDT said in its circular.

The monetary limit for an appeal before the Income Tax Appellate Tribunal has been increased from Rs 20 lakh earlier to to Rs 50 lakh, appeal before the High Court has been increased to Rs 1 crore from Rs 50 lakh. In case of Supreme Court, the monetary limit for an appeal has been increased from revised limit for filing appeal has been increased from Rs 1 crore to Rs 2 crore.

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