Revision of monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal and High Courts and SLP before Supreme Court – A significant measure for reducing litigation [Circular No. 21/2015, dated 10‐12‐2015]

The CBDT has, through this circular, revised the monetary limits for filing of appeals by the Department with the objective of reducing litigation as a part of its initiatives to reduce grievances of the tax payers.

Accordingly, henceforth, appeals/ SLPs shall not be filed in cases where the tax effect does not exceed the monetary limits given hereunder –

S. No.	Appeals in income -tax    matters	Monetary limit (Rs.)
1. 2. 3.	Before Appellate Tribunal Before High Court Before Supreme Court	10,00,000 20,00,000 25,00,000

 

It is also clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case.

Meaning of Tax Effect:

	Case	Tax effect
(i)	In cases not covered in (ii), (iii) and (iv) below	The tax on the total income assessed                          ( – ) The tax that would have been chargeable had such total income been reduced by the amount of income in respect of the issues against which appeal is intended to be filed (“disputed issues”).   Note – However, the tax will not include any interest thereon, except where chargeability of interest itself is in dispute.
(ii)	In case the chargeability of interest is the issue  under dispute	The amount of interest
(iii)	In cases where returned loss is reduced or assessed as income	The tax effect would include notional tax on disputed additions
(iv)	In case of penalty orders	Quantum of penalty deleted or reduced in the order to be appealed against