The Central Board of Direct Taxes (CBDT) has further enhanced the monetary limits for filing appeals by the Income Tax Department before various courts and tribunals to reduce litigation and promote efficient case management. This amends Circular No. 5 of 2024 and applies the revised monetary limits for income tax-related appeals.
New Monetary Limits for Appeals
Notes
Scope These limits apply to all cases, including those related to TDS/TCS under the Income-tax Act, 1961.
Merit-based Filings Appeals may still be filed based on the merit of the case, irrespective of the monetary limits, as per Circular No. 5 of 2024.
Exemptions Specific cases like revenue loss due to fraud, corruption, or law interpretations might still require appeals irrespective of the tax effect.
Objective The goal is to reduce unnecessary litigation and ensure certainty in tax assessments, streamlining taxpayer experiences.
Immediate Effect The modifications are effective immediately from the date of this circular (17th September 2024).
Pending Appeals These revised limits also apply to existing cases that are pending before the courts and tribunals.
Decision-making Appeals should not be filed solely based on the tax effect exceeding these monetary limits. Officers must consider the merits and overall objectives of providing tax certainty.
Reference to Section 268A of the Income-tax Act, 1961:
This circular is issued under the powers provided by Section 268A, which empowers the CBDT to set limits for appeals to reduce litigation.
