Tax appeal limits revised to ₹60 lakh, ₹2 crore and ₹5 crore

Business: The Income Tax department has increased the minimum limit for filing appeals in tribunals, high courts and the Supreme Court. According to a CBDT circular, tax officials can file appeals before the ITAT, High Court and Supreme Court if the disputed tax demand exceeds ₹60 lakh, ₹2 crore and ₹5 crore, respectively. In 2019, the government had set a limit of ₹50 crore for filing appeals in the Income Tax Appellate Tribunal (ITAT), high courts (₹1 crore) and the Supreme Court (₹2 crore). The Central Board of Direct Taxes (CBDT) has also said that the monetary limit for filing complaints/SLPs (special leave applications) will apply in all TDS/TCS cases.

It further said that SLPs/appeals pending before the Supreme Court, high courts and tribunals that are below the prescribed limit should be withdrawn. “As a step towards resolving litigation, the Board has decided to revise the monetary limit for filing appeals in income tax cases…,” the CBDT said. The CBDT also said that appeals cannot be filed only on the basis of tax implication. In case the prescribed monetary limit is exceeded, the case should be decided on its own. “The authorities concerned are required to take appropriate action against appeals,” the CBDT said in a circular.