The monetary limit which CBDT suggest is applicable to Income Tax Department i.e. it provides a parameter that the department can appeal against any order issued by an appellate authority only if it’s above a certain monetary limit so that department can focus on major cases and reduce litigations and this limit is increasing gradually and it has doubled within past one year. The monetary limit pertains to amount of Tax effect or in simple words amount of tax demand and it needs to be checked for each year of each assessee. The table showing current monetary limit effective from 08.08.2019 and previous limit is as under:
|S. No||Appeals/ SLPs in Income-tax matters||Monetary Limit (Rs.)||Previous limits|
|1.||Before Appellate Tribunal||50,00,000||20,00,000|
|2.||Before High court||1,00,00,000||50,00,000|
|3.||Before Supreme Court||2,00,00,000||1,00,00,000|
The circular read as under:
“1. Reference is invited to the Circular No.3 of2018 dated 11.07.2018 (the Circular) of Central Board of Direct Taxes (the Board) and its amendment dated 20th August. 2018 vide which monetary limits for filing of income tax appeals by the Department before Income Tax Appellate Tribunal. High Courts and SLPs/appeals before Supreme Court have been specified. Representation has also been received that an anomaly in the said circular at para 5 may be removed.
2.As a step towards further management of litigation. it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 ofthe Circular shall read as follows:
|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|
3.Further, with a view to provide parity in filing of appeals in scenarios where separate order is passed by higher appellate authorities for each assessment year vis-a-vis where composite order for more than one assessment years is passed. para 5 of the circular is substituted by the following para:
“5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If, in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit specified in para 3. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. In case where a composite order/ judgement involves more than one assessee. each assessee shall be dealt with separately.”
4.The said modifications shall come into effect from the date of issue of this Circular.
5.The same may be brought to the notice of all concerned.
6.This issues under section 268A of the Income-tax Act, 1961.
7.Hindi version will follow.
CBDT, New Delhi”
You can download the circular from here: Circular 17/2019
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