I-T dept hikes limits for filing appeals in courts

New Delhi: The income tax department has hiked the minimum threshold for filing appeals by the department in tribunal, high courts and the Supreme Court.

As per a circular by the CBDT, tax authorities can file appeals before the ITAT, high courts and the Supreme Court, if the disputed tax demand exceeds Rs 60 lakh, Rs 2 crore and Rs 5 crore, respectively.

In 2019, the government had set the threshold for filing appeals at Income Tax Appellate Tribunal (ITAT) at Rs 50 crore, high courts (Rs 1 crore) and Supreme Court (Rs 2 crore). The CBDT also said that monetary limit with regard to filing appeals/SLP (Special Leave Petition) shall be applicable to all cases including those relating to TDS/TCS.

It further said that SLPs/appeals pending before the Supreme Court, high courts, and tribunals that are below the prescribed threshold should be withdrawn. “As a step towards management of litigation, it has been decided by the Board to revise the monetary limits for filing of appeals in income tax cases...,” the CBDT said.

It also said that an appeal should not be filed merely because the tax effect in a case exceeds prescribed monetary limits and instead should be decided on merit of the case.

“The officers concerned shall keep in mind the overall objective of reducing unnecessary litigation and providing certainty to taxpayers on their income tax assessments while filing an appeal,” it said.

Finance Minister Nirmala Sitharaman in her Budget speech on July 23 had announced an increase in the monetary limits for filing appeals related to direct taxes, excise and service tax.