INCOME TAX

INSTRUCTION NO. 1979/2000

 Dated: March 27, 2000

Sub:- Revising Monetary limits for filing Departmental appeals/references before Income-tax Appellate Tribunal, High Courts and Supreme Court - Measures for reducing litigation - regarding

Reference is invited to Board's Instructions No.1903 dated 28th October, 1992 and Instruction No.1777 dated 4th November, 1987 wherein monetary limits of Rs.25,000/- for departmental appeals (in Income-tax matters) before the Appellate Tribunal, Rs.50,000/- for filing reference to the High Court and Rs.1,50,000/- for filing appeal to the Supreme Court were laid down.

2. In supercession of the above instruction, it has now been decided by the Board that appeals will be filed only in cases where the tax effect exceeds the revised monetary limits given here under:-

(Tax effect)
(i) Appeal before the Appellate Tribunal (in income-tax matters) Rs.1,00,000/-
(ii) Appeal u/s 260A/reference u/s 256(2) Before the High Court Rs.2,00,000/-
(iii) Appeal in the Supreme Court Rs.5,00,000/-

The new monetary limits would apply with reference to each case taken singly. In other words, in group cases, each case should individually satisfy the new monetary limits. The working out of monetary limits will therefore not take into consideration the cumulative revenue effect as envisaged in Board's earlier Instruction referred to above.

3. Adverse judgements relating to the following should be contested irrespective of revenue effect:

(i) Where Revenue Audit objection in the case has been accepted by the Department.
(ii) Where Board's order, notification, instruction or circular is the subject matter of an adverse order.
(iii) Where prosecution proceedings are contemplated against the assessee.
(iv) Where the constitutional validity of the provisions of the Act are under challenge.

4. Special Leave Petitions under Article 136 of the Constitution are filed before the Supreme Court only in consultation with Ministry of Law. Therefore, where the chief Commissioner decides to contest an adverse judgement by filing special leave petition before the Supreme Court, they should send the proposal to the Board for further processing.

5. These instruction will apply to litigation under other Direct taxes also e.g. wealth-tax, gift-tax, estate duty etc.

6. These monetary limits will not apply to Writ matters.

7. This Instruction will come into effect from 1.4.2000.

F.NO.279/126/98-ITJ

(Anuradha Goyal)
Deputy Secretary to the Government of India