June 2008
Revision of monetary limits for filing appeals by the Income-tax Department before ITAT, HC and SC : Instruction No. 5/2008, dated 15-5-2008.
By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Chartered Accountants
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Part A : DIRECT TAXES
5 Revision of monetary limits for filing
appeals by the Income-tax Department before ITAT, HC and SC : Instruction No.
5/2008, dated 15-5-2008.
Appeals shall be filed by the Department after 15th May,
2008, only if the cases where tax effect exceeds monetary limits given
hereunder :
|
Sr. No. |
Appeals in Income tax matters |
Monetary limit (In Rs.) |
|
1 |
Appeal before Appellate Tribunal |
2,00,000 |
|
2 |
Appeal u/s.260A before High Court |
4,00,000 |
|
3 |
Appeal before Supreme Court |
10,00,000 |
Tax effect has been defined to mean difference between tax
assessed and tax that would have been chargeable on disputed issues (to apply to
loss cases also). It is also clarified that ‘tax’ shall not include interest. In
the cases of penalty orders, the tax effect will mean quantum of penalty deleted
or reduced in the order to be appealed against. The instructions also specify
the cases, wherein appeal can be filed by Department irrespective of the
monetary limit and the mode of computation for consolidated appeals which cover
more than one assessment year. It has been clarified that non-filing of appeal
by department due to monetary limits as prescribed does not mean the decision as
taken by the appropriate authority is accepted. Also there are instances
specified when the appeal needs to be filed irrespective of the quantum
involved.
