The Central Board of Direct Taxes (“CBDT”) on August 08, 2019 enhanced the existing monetary limits (“Limits”) for filing income tax appeals before the Income Tax Appellate Tribunal (“ITAT”), the High Courts and the Supreme Court. The object behind enhancing the Limits is to (a) reduce the burden on appellate authorities; (b) shift the focus towards litigation involving complex legal issues and high tax effect; and (c) not to spend time and resources towards appeals of lesser impact. The following are the revised Limits to approach appellate authorities under the Income Tax Act, 1961 –
|
Appellate Authority |
Existing Limits (INR) |
Revised Limits (INR) |
|
ITAT |
20,00,000/- |
50,00,000/- |
|
High Courts |
50,00,000/- |
1,00,00,000/- |
|
Supreme Court |
1,00,00,000/- |
2,00,00,000/- |
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The revised monetary Limits will help reduce the legal costs incurred by the income tax authorities. It will ensure that appellate authorities will focus on issues involving litigation of substantial value. Taking cognizance of the fact that a large number of appeals are pending before the appellate authorities, we believe that this move will reduce the number of pending appeals. This move will also ensure that forums dealing with income tax cases exercise more diligence while resolving disputes which do not meet the Limits for filing appeals.
Disclaimer: This post has been prepared for informational purposes only. The information/or observations contained in this post does not constitute legal advice and should not be acted upon in any specific situation without seeking proper legal advice from a practicing attorney.