Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 15th December, 2015
Subject: Initiatives for reducing
The Central Board of
Direct Taxes has issued a Circular revising the monetary limits for filing of
appeals by the Department with the objective of reducing litigation as a part
of its initiatives to reduce grievances of the taxpayers.
The monetary limits for
filing of appeals by the Department before the Income Tax Appellate Tribunal
and the High Courts have been revised to tax effect of Rs. 10 Lakhs and Rs. 20
Lakhs, respectively, from the present limits of tax effect of Rs. 4 Lakhs and
Rs. 10 Lakhs. The revised limits have been made applicable retrospectively to
pending appeals also. Directions have been issued that pending appeals which
are below the revised monetary limits may be withdrawn or not pressed.
another noteworthy decision, the CBDT has issued an Office Memorandum directing
Principal Chief Commissioners to constitute a collegium of Chief Commissioners
of Income Tax comprising of two officers in their respective Regions. This
collegium will consider withdrawal of appeals filed by the Department in cases
involving tax effect above the revised monetary limit from the High Courts if
no question of law is involved, the issue is considered settled by the
Department or the appeal is no longer relevant in view of subsequent amendment.
two decisions are expected to reduce pending litigation filed by the Department
by 50 percent and provide relief to taxpayers facing long standing litigation.
Circular No.21/2015 and O.M. bearing
F.no.279/Misc/52/2014-(ITJ) are available on the website of the Department www.incometaxindia.gov.in .
Pr. Commissioner of Income Tax
Official Spokesperson, CBDT