CBDT allows I-T dept to file appeals irrespective of monetary threshold, includes TDS disputes
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The Central Board of Direct Taxes (CBDT) has said the Income Tax department can file appeals irrespective of monetary threshold in cases relating to TDS/TCS, undisclosed foreign income, or information received from investigating agencies like ED and GST Intelligence.
As per the present rules, tax authorities are allowed to file appeals before the ITAT, High Court and Supreme Court, if the disputed tax demand exceeds Rs 50 lakh, Rs 1 crore and Rs 2 crore, respectively. These thresholds were fixed in 2019.
In a circular issued on March 15, the CBDT said that the monetary limits would not be applicable for filing appeals in cases where the prosecution has been filed by the department in the relevant case, and trial is pending and conviction order has been passed and the same has not been compounded.
Cases where the assessment is based on information with regard to an offence alleged to have been committed under any other law and information received from law enforcement or intelligence agencies, like CBI, ED, DRI, SFIO, NIA, NCB, Directorate General of GST Intelligence (DGGI), and state law enforcement agencies, in such cases the appeals would be filed irrespective of the tax demand on the assessee.
The threshold would not apply to litigation arising out of disputes relating to TDS/TCS in domestic and international taxation, or disputes relating to the applicability of provisions of the Double Taxation Avoidance Agreement.
"Filing of appeals in such cases is to be decided on the merits of the case. The officers concerned should keep in mind the overall objective of reducing unnecessary litigation and providing certainty to taxpayers on their I-T assessments while taking a decision regarding filing an appeal," the CBDT said.
Taxmen would also have to file appeals irrespective of the tax demand in dispute in cases of undisclosed foreign income /assets/bank accounts.
About 2.7 crore direct tax demands totalling about Rs 35 lakh crore are being disputed at various foras.
As per the present rules, tax authorities are allowed to file appeals before the ITAT, High Court and Supreme Court, if the disputed tax demand exceeds Rs 50 lakh, Rs 1 crore and Rs 2 crore, respectively. These thresholds were fixed in 2019.
In a circular issued on March 15, the CBDT said that the monetary limits would not be applicable for filing appeals in cases where the prosecution has been filed by the department in the relevant case, and trial is pending and conviction order has been passed and the same has not been compounded.
Cases where the assessment is based on information with regard to an offence alleged to have been committed under any other law and information received from law enforcement or intelligence agencies, like CBI, ED, DRI, SFIO, NIA, NCB, Directorate General of GST Intelligence (DGGI), and state law enforcement agencies, in such cases the appeals would be filed irrespective of the tax demand on the assessee.
The threshold would not apply to litigation arising out of disputes relating to TDS/TCS in domestic and international taxation, or disputes relating to the applicability of provisions of the Double Taxation Avoidance Agreement.
"Filing of appeals in such cases is to be decided on the merits of the case. The officers concerned should keep in mind the overall objective of reducing unnecessary litigation and providing certainty to taxpayers on their I-T assessments while taking a decision regarding filing an appeal," the CBDT said.
Taxmen would also have to file appeals irrespective of the tax demand in dispute in cases of undisclosed foreign income /assets/bank accounts.
About 2.7 crore direct tax demands totalling about Rs 35 lakh crore are being disputed at various foras.
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