Direct Tax Instruction No. 5 dated 16 July 2007 
 
Filing of appeals by Department before various appellate bodies - Clarification regarding revision of monetary limits

The CBDT invited reference to Instruction No. 2 dated 24 October 2005 wherein monetary limits for filing appeals before various appellate authorities had been prescribed and clarified that the 'tax effect' occuring therein meant the tax only, i.e. tax excluding interest. The Board also decided that cases where the question of law involved or raised in appeal was or were of a recurring nature to be decided by the Court, should be separately considered on merits without being hindered by the monetary limits. It was further notified that Instruction No. 1979 dated 27 March 2000 and Instruction No. 2 dated 24 October 2005 would continue to govern the decision for filing of Departmental appeals. The revised Instruction was applicable from 16 July 2007.

Subject:- Revision of monetary limits for filing appeals by the department before various appellate bodies or appellate authorities - clarification regarding.

Reference is invited to Board's Instruction No 02/2005 dated 24-10-2005 wherein monetary limits for filing appeals before various appellate authorities have been prescribed.

2. With reference to para 2 of the above instruction, it is clarified that the 'tax effect' specified in para 2 means the tax only, i.e. tax excluding interest.

3. Para 3 of the Instruction No.02/2005 is substituted as under:

"The Board has also decided that cases where the question of law involved or raised in appeal is/are of a recurring nature to be decided by the Court, should be separately considered on merits without being hindered by the monetary limits."

4. Subject to paragraphs 2 and 3 above, the Instruction No. 1979 dated 27-03-2000 clarified subsequently by Instruction No. 1985 dated 29-06-2000 and Instruction No.02/2005 dated 24-10-2005, will continue to govern the decision for filing of departmental appeals.

5. This Instruction will come into effect from 16.07.2007.

6. Hindi Version of the Instruction follows.

Madhukar Kumar Bhagat
DS (ITJ)

Appeals filed by IT Department - Revision of monetary limits 

The CBDT revised the prescribed monetary limits for filing appeals, which had been notified vide Instruction No. 1985 dated 27 March 2000 and Instruction No. 1985 dated 29 June 2000. It also clarified that in cases where a substantial question of law was involved, the appellate authorities could proceed without being hindered by monetary limits. 
 
Direct Tax Instruction No. 2 dated 24 October 2005

To

All Chief Commissioners of Income Tax and
Directors General of Income Tax.

Reference is invited to Boards Instruction No.1979 dated 27.3.2000 [F.No.279/126/98-ITJ dt. 27.3.2000] and Instruction No.1985 dated 29.6.2000 [F.No.279/126/98-ITJ dated 29.6.2000] 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:-

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 being 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.

Sd/-
S.C.L. Dhamija
OSD (ITJ)

F.No.279/Misc.-64/05-ITJ

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi