Enhanced Monetary Limit For Filing An Appeal

The Central Board of Direct Taxes vide circular no. 17/2019 dated 8

th August 2019, has recently enhanced the monetary limit for filing of an appeal by the Department of Income Tax before the Income Tax Appellate Tribunal (ITAT), High Courts and SLP or appeal before the Supreme Court. Earlier the monetary limit was increased by the CBDT vide circular no. 3/2018 dated 11th July 2018. The primary purpose for enhancement of the monetary limit is to reduce the taxpayer’s grievances and litigations effectively. The enhanced monetary limit also aims to aid the department to mainly focus on litigation which involves higher tax effect and litigation which includes complex legal issues. Following table summarizes the enhanced monetary limit against earlier monetary limit:

S. No.	Department against which appeal/SLPs is to be filed	Enhanced Monetary Limit	Earlier Monetary Limit
1	Appellate Tribunal	INR 50 Lakhs	INR 20 Lakhs
2	High Court	INR 1 Crore	INR 50 Lakhs
3	Supreme Court	INR 2 Crore	INR 1 Crore

Further clarification provided under the above referred Circular no. 17/2019 dated 8

th August 2019:

The monetary limit is applicable individually for each assessee and each assessment year.
If in case of an individual assessee, the disputed issue arises in more than one assessment year, then, the Department can file an appeal only for such assessment year in which the tax effect exceeds the monetary limit.
Further, Cases wherein there is a combined order for more than one year of an assessee, the appeal can be filed only for such assessment year in which the tax effect exceeds the prescribed monetary limit.
Cases, wherein, one single order includes more than one assessee, the appeal can be filed only for that assessee in which the tax effect exceeds the monetary limit.

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Frequently Asked Questions

Common questions about Limit for Filing an Appeal.

The primary purpose of enhancing the monetary limit for filing appeals is to reduce taxpayers' grievances and litigations effectively. It also aims to aid the Income Tax Department in focusing mainly on litigation involving higher tax effects and complex legal issues.

The enhanced monetary limit is applicable individually for each assessee and each assessment year. If the disputed issue arises in more than one assessment year for an individual assessee, the Department can file an appeal only for such assessment years in which the tax effect exceeds the monetary limit.

In cases where there is a combined order for more than one assessment year of an assessee, the appeal can be filed only for such assessment years in which the tax effect exceeds the prescribed monetary limit.

In cases where one single order includes more than one assessee, the appeal can be filed only for those assessees in which the tax effect exceeds the monetary limit.

The enhanced monetary limit for filing an appeal before the Income Tax Appellate Tribunal (ITAT) is INR 50 Lakhs, an increase from the earlier limit of INR 20 Lakhs.

The enhanced monetary limit for filing an appeal before the High Court is INR 1 Crore, an increase from the earlier limit of INR 50 Lakhs.

The enhanced monetary limit for filing an appeal or Special Leave Petition (SLP) before the Supreme Court is INR 2 Crore, an increase from the earlier limit of INR 1 Crore.

The Central Board of Direct Taxes (CBDT) issued Circular No. 17/2019 dated 8th August 2019, enhancing the monetary limit for filing appeals.

The CBDT had earlier increased the monetary limit vide Circular No. 3/2018 dated 11th July 2018.

The circular does not explicitly mention whether the enhanced monetary limit applies retroactively to pending appeals or only to new appeals filed after the circular's issuance.