INCOME TAX

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

Instruction : No. 2/2005, dated 24-10-2005.

Reference is invited to Board’s Instruction No. 1979, dated 27-3-2000 [F.No. 279/126/98-ITJ, dated 27-3-2000] (See Clarification One) and Instruction No. 1985, dated 29-6-2000 [F. No. 279/126/98-ITJ, dated 29-6-2000] (See Clarification five) wherein monetary limits for filing appeals/references before various appellate authorities have been prescribed.

2. In partial modification of the above instruction, it has now been decided by the Board that appeals will henceforth be filed only in cases where the tax effect exceeds the revised monetary limits given hereunder :–

Sl. No.	Income-tax	Tax Effect
(i)	Appeal before Appellate Tribunal	Rs. 2,00,000
(ii)	Appeal under section 260A	Rs. 4,00,000
(iii)	Appeal before the Supreme Court	Rs. 10,00,000

3. The Board has also decided that in cases involving substantial question of law of importance as well as in cases where the same question of law will repeatedly arise, either in the case concerned or in similar cases, should be separately considered on merits without hindered by the monetary limits.

4. Subject to the paragraphs 2 and 3 above, the Instruction No. 1979, dated 27-3-2000 as clarified subsequently in Instruction No. 1985, dated 29-6-2000, will continue to govern the decision for filing of departmental appeals.

5. This Instruction will come into effect from 31-10-2005.