‘Record disagreement with decision if tax appeal not filed due to new rules’

By: | Published: July 18, 2018 4:37 AM

Central Board of Direct Taxes (CBDT) has instructed its senior officials that if an appeal is not filed in a higher forum due to restriction imposed on monetary limit of tax effect alone then the same should be recorded to avoid any misinterpretation that the department agreed with the ruling or order.

Concerned officials must “specifically record that even though the decision is not acceptable, appeal is not being filed only on the consideration that the tax effect is less than the monetary limit specified in this circular”, the Board said. (PTI)

After the government raised the monetary threshold for filing appeals in tax disputes, the Central Board of Direct Taxes (CBDT) has instructed its senior officials that if an appeal is not filed in a higher forum due to restriction imposed on monetary limit of tax effect alone then the same should be recorded to avoid any misinterpretation that the department agreed with the ruling or order.

In such cases, the concerned officials must “specifically record that even though the decision is not acceptable, appeal is not being filed only on the consideration that the tax effect is less than the monetary limit specified in this circular”, the Board said.

Last week, the government doubled the monetary threshold for appeals at tribunal to Rs 20 lakh. For filing appeals in high courts, the matter must involve a tax demand of over Rs 50 lakh from Rs 20 lakh earlier. In case of appeals in the Supreme Court, the threshold has been increased fourfold to Rs 1 crore.

The department further said that there would be no presumption that the I-T department has acquiesced in the decision on the disputed issues. The department would also not be barred from filing an appeal against the disputed issues in the case of the same assessee for any other assessment year, or in the case of any other assessee for the same or any other assessment year, if the tax effect exceeds the specified monetary limits.

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