CBDT raises monetary limit for filing appeals

The Central Board of Direct Taxes (CBDT) vide a Circular dated 8th August, 2019 has decided to raise threshold monetary limits for filing Departmental Appeals before the Appellate Tribunals (ITAT/ CESTAT), High Courts and Supreme Court. The Board had earlier by Circular No. 3/2018 dated 11 July 2018 had increased the monetary limits.

This decision has been taken to reduce litigation, facilitate ease of doing business and to remove long pending grievances of taxpayers in the matters of direct/ indirect taxes. Revised monetary limits are given below:

Sr. No.Appeals/SLPs in income tax mattersEarlier Limits (vide circular 3/2018)Revised Limits (vide this circular 17/2019)
1Before Appellate Tribunal20,00,00050,00,000
2Before High Court50,00,0001,00,00,000
3Before Supreme Court1,00,00,0002,00,00,000

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 the disputed issue is for more than one Assessment year (AY), then appeal can be filed only in respect of such AY where the tax effect in respect of the disputed issues exceeds the monetary limit specified.

In 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 case where a composite order/ judgement involves more than one assesse, each assesse shall be dealt with separately.

Click here to see Circular.