CBDT Revises Exemptions to Monetary Limits for Filing Appeals u/s 158AB of Income Tax Act [Read Circular]

The Central Board of Direct Taxes (CBDT) revised the exemptions to monetary limits for filing appeals under Section 158AB of the Income Tax Act, 1961.

The notification clarifies that in cases were only one ground is contested and where the tax effect is greater than the monetary threshold as per the extant monetary limits for filing appeals at relevant judicial for a, set by CBDT, and section 158AB of the Income Tax Act is applicable to it, appeal may be deferred in the current year in view of the provisions of section 158AB of the Income Tax Act.

The appeal is to be filed in the year in which the final decision on the identical question of law is received in favour of Revenue in the year in which the final decision on the question of law is received in favour of Revenue in the 'other case' ('other case' being as referred to in section 158AB of the Income Tax Act).

(ii) In cases where multiple grounds are contested and where the total tax effect of all the disputed grounds (i.e., grounds to which Section 158AB is applicable and otherwise) is greater than the extant monetary limits for filing appeals at relevant judicial for a, set by CBDT, and Section 158AB is applicable only to certain grounds, the guidelines for filing appeal are as follows:

(a) in the current year,

i.filing of appeal on the grounds to which section 158AB of the Income Tax is applicable may bedeferred in View of the provisions of that section

ii.appeal may be filed on the residual grounds.

(b) in the year in which the final decision on the identical question of law is received infavour of Revenuein the year in which the final decision on the question of law is received in favour of Revenue in the 'other case' ('other case' being as referred to in section 158AB of the Income Tax Act)appeal is to be filed on the grounds to which section 158AB of the Income Tax Act is applicable, irrespective of the monetary limit at that point in time.

The Board made it clear that “In respect of deferring appeals under Section 158AB of the Income Tax Act, while adhering to the guidelines as laid down in the preceding paras, it is to be ensured that when judicial finality is achieved in favour of Revenue in the 'other case', appeal in the 'relevant case' should be contested on merits subsequent to the decision in the 'other case' irrespective of the extant monetary limits. Further, if the judicial outcome in the 'other case' is in favour of Revenue and is not accepted by the Department, appeal against the same may be contested on merits in the 'other case' irrespective of the extant monetary limits, to arrive at judicial finality”.

To Read the full text of the Order CLICK HERE

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