REGARDING MONETORY LIMIT APPLICABILITY FOR ITAT APPEAL

This query is : Resolved

Quick Summary

When the department considers filing an appeal to the ITAT, the monetary limit applicable is determined by the date of the CIT(A) order, not the original assessment year. This means the most recent monetary limits, as updated by CBDT circulars, will apply if the CIT(A) order was issued in the current financial year. These enhanced limits are relevant for all appeals filed from the date of the circular onwards, irrespective of when the original assessment was completed.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
Follow

20 September 2025 IF ORIGINAL ASSESSMENT ORDER WAS OF F.Y. 2018-19 AND ORDER U/S 250 OF CIT ABOUT NIL DEMAND WAS ISSUED IN F.Y. 2025-26 THEN WHETHER DEPARTMENT CAN FILE APPEAL BY CONSIDERING MONETORY LIMIT OF ORIGINAL ORDER OR CIT ORDER?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

20 September 2025 If the original assessment order was for F.Y. 2018-19, but the final order (u/s 250 of the Income Tax Act) causing nil demand was issued in 2025-26, the department must consider the monetary limit applicable as on the date of the CIT(A) order (i.e., in 2025-26) and not the limit prevailing during the original assessment. This is per CBDT Circulars and appellate practice, which require the applicable monetary threshold for departmental appeals to be determined with reference to the date of the appealable order—here, the CIT(A) order under section 250.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

20 September 2025 CBDT Circular No. 5/2024 (March 2024) and follow-up notification in September 2024 increased monetary limits for filing appeals.

For appeals before ITAT, High Court, and Supreme Court, the revised limits must be used when evaluating the department's right to appeal—regardless of when the original assessment was conducted.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

20 September 2025 The CBDT revises monetary limits for departmental appeals periodically.

The relevant monetary ceiling for filing an appeal is always determined based on the date of the order against which the department seeks to appeal—not the original assessment date.

Latest instructions (e.g., Circulars issued in 2024) clarify that enhanced monetary limits apply to all appeals filed henceforth, as well as pending appeals.

If the CIT(A) order under section 250 was issued in F.Y. 2025-26, the department must apply the monetary limits prescribed as of 2025-26 to decide whether to appeal against the CIT(A) order.

These limits are not retrospective to the date of the assessment or the assessment order.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

21 September 2025 Good luck....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now