CBDT increase monetary limits of tax effect for filing appeals by the Income Tax Department
CBDT has further enhanced the monetary limits for filing appeals by the Income Tax Department before Income Tax Appellate Tribunal, High Courts and Special Leave Petition (SLP)/appeals before Supreme Court.
Earlier CBDT vide Circular No. 5/2024 dated 15.03.2024 had revised the monetary limits for filing appeals/SLP by the Department. Exceptions to the Monetary Limits were also provided in the said Circular.
CBDT has issued Circular No. 9/2024 dated 17th September 2024 to further increase/revise the above said monetary limits as under:
Appeals / SLP not falling in the exceptions shall not be filed in cases where the tax effect does not exceed the monetary limits as under:
| Sl. No. | Appeals/SLP in Income Tax matters | Existing Monetary Limits (Rs.) | Revised Monetary Limits (Rs.) |
| 1. | Before Appellate Tribunal | 50 Lakhs | 60 Lakhs |
| 2. | Before High Court | 1 Crores | 2 Crores |
| 3. | Before Supreme Court | 2 Crores | 5 Crores |
It has been clarified that the above monetary limits shall be applicable to all cases including those related to TDS/TCS under Income Tax Act 1961 with exceptions as per para 3.1 and 3.2 of Circular No. 5/2024 where the decision to file appeal/SLP shall be taken on merit, without regard to tax effect.
It has been again clarified that an appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits 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 taking a decision regarding filing an appeal.
The revision in the monetary limits take effect from 17th September 2024 and shall apply to all appeals/SLP filed henceforth. It is also applicable to all pending appeals/SLPs before the ITAT, High Courts and Supreme Court which the Department has been advised to withdraw.
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