CBDT Hikes Monetary Limits for Filing of Appeals by Income Tax Department

The Central Board of Direct Taxes (CBDT) has significantly increased the limit for the income tax department to appeal disputes in higher forums.

One of the reasons behind the decision to raise the monetary limits is that the revenue department has fared poorly in the appeals filed by it, which was highlighted in the Economic Survey of 2017-18. The survey had noted that while the departmental appeals account for 85 per cent of the total number of appeals and the department was found to have a failure rate of more than 65 per cent.

New Limits Prescribed by the CBDT

• The monetary limit for an appeal before the Income Tax Appellate Tribunal has been increased to Rs 50 lakh from Rs 20 lakh.
• The limit has been doubled to Rs 1 crore in case of High Courts.
• The limit has been increased from Rs 1 crore to Rs 2 crore for appeal in Supreme Courts.

For the second time in the year, the CBDT has taken the decision to increase the monetary limits for the filing of income-tax appeals. This will help in de-clogging the courts and also help the Department in focussing its resources on high value/complex appeals. Further reducing the pending litigation under the existing income-tax law would also ensure a smoother transition into the new Direct Tax Code.