CBDT Come Up With New Instructions For The Tax Department

The Central Board of Direct Taxes (CBDT) has come up with new instructions for the tax department on the issue of filing of its appeals before the Income Tax Appellate Tribunals (ITAT), High Courts and Supreme Court, giving greater clarity on the matter. The latest instructions spell out elaborately the monetary restrictions and the conditions under which the department could prefer appeals before the Appellate Tribunals, High Courts and Supreme Court. Although the monetary limits were spelt out in CBDT''s earlier instructions in 2005 and 2007, tax experts said that clarity was missing on issues like treatment of penalty orders. The department can file appeals in those cases where the tax effect surpasses the monetary limit prescribed under the latest instructions. While the monetary limit for appeal before appellate tribunal has been estimated at Rs 2 lakh, the limit for appeal under Section 260A before the High Court is Rs 4 lakh and before the Supreme Court is Rs 10 lakh.