INCOME TAX

INSTRUCTION NO. 1985/2000

 Dated: June 29, 2000

Sub:- Revision of monetary limits for filing Department appeals/references before various appellate authorities - clarification in respect of instruction No. 1979 dated 27.3.2000 - regarding.

Reference is invited to Board's Instruction No.1979 dated 27th March 2000 wherein monetary limits for filing appeals/references before various appellate authorities have been prescribed. Clarification has been sought regarding certain issues discussed in the said instruction.

The Board have considered the issues raised and it is clarified that-

1) the memory limits in the context of "each case take singly" would mean each assessment year for each assessee considered in the case of XYZ Limited for Assessment Year 1995 - 96 and 1996-97, the monetary limit as prescribed in Instruction No.1979 would apply taking together the assessment years 1995-96 and 1996-97.

2) even if the issues involved in an appeal under consideration are already pending in appeal before the appellate authorities, all subsequent appeals will now be filed for particular assessment year only as indicated in (i) above, if the tax effect exceeds the prescribed monetary limit.

3) in para 3(iii) of the Instruction, it has been stated that the adverse judgements should be contested irrespective of the revenue effect in a case where prosecution proceedings are contemplated against any assessee. However, it is possible that the prosecution proceeding may be contemplated against any assessee on points different from the issues disputed in appeal. For example, case under consideration may relate to assessment order u/s 143(3) whereas the prosecution proceedings may have been initiated on other point like TDS. It is clarified that, the adverse judgement should be contested only if the prosecution proceedings contemplated relates to point under appeal and not on points unrelated to the issues in appeal.

4) This may be brought to the notice of all the officers working under your charge.

(F.No. 279/126/98 - ITJ

(Sandip Pradhan)
Under Secretary to the Government of India