The CBDT has permitted income tax authorities to file appeals irrespective of monetary threshold in cases relating to TDS/TCS, undisclosed foreign income or information received from investigating agencies such as ED and GST Intelligence.

Currently, tax authorities can 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 — a threshold fixed in 2019.

The Central Board of Direct Taxes (CBDT) in a circular dated March 15 said that the said monetary limits will 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 about an offence alleged to have been committed under any other law and information received from law enforcement or intelligence agencies such as 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.

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.

Narayan Jain, President of All India Federation of
Tax Practitioners said the criteria containing exceptions for filing appeals even in
cases where it does not exceed monetary limit have been
enlarged.