New Delhi, September 17, 2024: The Central Board of Direct Taxes (CBDT) has increased the monetary limits for filing income tax appeals by the Department before the Income Tax Appellate Tribunal, High Courts, and the Supreme Court.
Key Changes:
- Increased Monetary Limits: The new monetary limits are as follows:
- Before Income Tax Appellate Tribunal: ₹60 lakh
- Before High Court: ₹2 crore
- Before Supreme Court: ₹5 crore
- Applicability: These limits apply to all cases, including those related to TDS/TCS under the Income-tax Act, 1961.
- Exceptions: The decision to appeal or file an SLP in cases below the monetary limits shall be taken on merits, without considering the tax effect.
Rationale:
The CBDT aims to manage litigation more effectively and reduce unnecessary appeals. By increasing the monetary limits, the Board hopes to focus on cases with significant tax implications and provide greater certainty to taxpayers.
Key Points to Remember:
- Merit-Based Decisions: The decision to file an appeal should not be solely based on the tax effect. The merits of the case should be considered.
- Reduced Litigation: The CBDT emphasizes the importance of reducing unnecessary litigation to ensure timely resolution of tax disputes.
- Taxpayer Certainty: The Board aims to provide greater certainty to taxpayers by focusing on significant cases and reducing appeals in less substantial matters.
The modification shall come into effect from the date of issue of this circular, this circular will apply to SLPs/appeal to be filled hence forth in SC/HCs/Tribunal. It shall also apply to the SLPs/appeals pending before Supreme Court/High Courts/Tribunal which may accordingly be withdrawn.
Detailed Circular:
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