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09 August 2019

Income Tax - Monetary limits for departmental appeals before ITAT, HC and SC revised


9th August 

Ministry of Finance has enhanced the monetary limits for filing income tax appeals by Revenue department before ITAT, High Courts and Supreme Court.

According to CBDT Circular No. 17/2019, dated 8-8-2019, Revenue department would not be able to file appeal before ITAT if the amount (tax effect) does not exceed Rs. 50 lakh and before the High Courts if the tax effect does not exceed Rs. 1 crore. Similarly, departmental appeals before the Supreme Court cannot be filed if the tax effect does not exceed Rs. 2 crore.

The earlier monetary limits were 20 lakh, 50 lakh and 1 crore, respectively, for ITAT, High Courts and Supreme Court.

CBDT Circular also states that 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 as specified.

Amendments in this regard have been made in Circular No. 3/2018 which had also specified the scope of ‘tax effect’.