To reduce avoidable litigation, the Central Board of Direct Taxes (CBDT) forms an officers’ panel to decide on deferring appeals in tax disputes. A collegium comprising three officers of the rank of a Principal Chief Commissioner or Chief Commissioner is authorized by the CBDT to address disputes and defer the filing of appeals before the Income Tax Appellate Tribunal or high courts if the amount involved is lower than the revised threshold limit or if the question of law is already under consideration before the Court.
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According to a statement issued by the Central Board of Direct Taxes (CBDT), the monetary limit for an appeal before the Income Tax Appellate Tribunal has been raised from Rs 20 lakh to Rs 50 lakh.
The limit for submitting an appeal in high courts has been doubled to ₹1 crore, while the revised amount for filing an appeal in the Supreme Court has been raised from ₹1 crore to ₹2 crores, it added. In this way, the judiciary has the opportunity to avoid repetitive appeals on the same issue.
A new section, section 158 AB, was introduced into the Income Tax Act by the government in Finance Act 2022 to reduce litigation.
This is a welcome move and shall reduce the number of litigation pendency before the ITAT, High Court and Supreme Courts and will further reduce the chances of conflicting judgements on the same or similar issues of law.