CBDT has vide earlier circular no. 17/2019 Dt. 08.08.2019, increased the monetary limit of tax effect for filing appeal before various appellate authorities and Court’s, which are as under:
| S. No | Appeals/ SLPs in Income-tax matters | Monetary Limit (Rs.) |
| 1. | Before Appellate Tribunal | 50,00,000 |
| 2. | Before High court | 1,00,00,000 |
| 3. | Before Supreme Court | 2,00,00,000 |
Thus, revenue cannot go into appeal before above mentioned authority if the tax effect in any appeal as mentioned above is not exceeded. If revenue files an appeal which is below above limit and not falling under any exception then assessee can file an application before the authority to get the proceedings dropped.
However, CBDT has vide circular no. 5/2024 Dt. 15.03.2024, provided a few exceptions wherein the above monetary limit shall not be applicable and appeal can still be filed. The exceptions listed in circular are as under:
a. Where any provision of the Act or the Rules or notification issued thereunder has been held to be constitutionally invalid, or
b. Where any order, notification, instruction or circular of the Board or the Government has been held to be illegal or ultra vires the Act or otherwise constitutionally invalid, or
c. Where the assessment is based on information in respect of any offence alleged to have been committed under any other law received from any of the law enforcement or intelligence agencies such as CBI, ED, DRI, SFIO, NIA, NCB, DGGI, state law enforcement agencies such as State Police, State Vigilance Bureau, State Anti Corruption Bureau, State Excise Department, State Sales/Commercial Taxes or GST Department, or
d. Where the case is one in which prosecution has been filed by the Department in the relevant case and the trial is pending in any Court or conviction order has been passed and the same has not been compounded, or
e. Where strictures/adverse comments have been passed and/or cost has been levied against the Department of Revenue, CBDT or their officers, or
f. Where the tax effect is not quantifiable or not involved, such as the case of registration of trusts or institutions under sections 10(23C), 12 A/ 12AA/12AB of the Act, order passed u/s 263 of the Act etc. The reference to cases involving sections referred here, where it is not possible to quantify tax effect or tax effect is not involved, is for the purpose of illustration only.
g. Where addition relates to undisclosed foreign income/undisclosed foreign assets (including financial assets)/undisclosed foreign bank account, or
h. Cases involving organized tax evasion including cases of bogus capital gain/loss through penny stocks and cases of accommodation entries, or
i. Where mandated by a Court’s directions, or
j. Writ matters, or
k. Matters related to wealth tax, fringe benefit tax, equalization levy and any matter other than the Income Tax Act, or
l. In respect of litigation arising out of disputes related to TDS/TCS matters in both domestic and International taxation charges:-
i. Where dispute relates to the determination of the nature of transaction such that the liability to deduct TDS/TCS thereon or otherwise is under question, or
ii. Appeals of International taxation charges where the dispute relates to the applicability of the provisions of a Double Taxation Avoidance Agreement or otherwise
m. Any other case or class of cases where in the opinion of the Board it is necessary to contest in the interest of justice or revenue and specified so by a circular issued by Board in this regard.
Thus, if the case falls under any of the above exception then revenue would be still able to file appeal before the authorities even if the amount is not exceeding the above monetary limit.
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