Clarification on applicability of Circular No 21/2015, dated 10-12-2105 [Letter F. No. 279/Misc./M-142/2007 – ITJ (Part), dated 08-03-2016]

The monetary limits for filing appeals before the Income Tax Appellate Tribunals and High Courts were raised to ` 10 lakhs and ` 20 lakhs, respectively, by Circular 21/2015 dated 10.12.2015.

The issue under consideration is whether such circular would be applicable to cross objections filed by the Department before the Income-tax Appellate Tribunal under section 253(4) and to references to the High Court under sections 256(1) and 256(2).

The CBDT has examined the matter and clarified that the monetary limit of ` 10 lakhs for filing appeals before the ITAT would apply equally to cross objections under section 253(4). Cross objections below this monetary limit, already filed, should be pursued for dismissal as withdrawn/not pressed. Filing of cross objections below the monetary limit may not be considered henceforth.

Similarly, references to High Courts below the monetary limit of ` 20 lakhs should be pursued for dismissal as withdrawn/not pressed. References below this limit may not be considered henceforth.