The Central Board of Direct Taxes (Central Board of Direct Taxes) has noted the significant pendency of income tax appeals across various appellate forums and is continuing efforts to improve litigation management and reduce taxpayer disputes.
The objective of the revised policy is to reduce low-value litigation so that departmental resources can be focused on cases involving higher tax impact and complex legal issues.
Revised monetary limits for filing departmental appeals
As part of this rationalisation, the monetary thresholds for filing appeals have been enhanced as follows:
Income Tax Appellate Tribunal (ITAT)
Earlier limit: ₹20,00,000
Revised limit: ₹50,00,000
High Courts
Earlier limit: ₹50,00,000
Revised limit: ₹1,00,00,000
Supreme Court
Earlier limit: ₹1,00,00,000
Revised limit: ₹2,00,00,000
Policy intent
The revision aims to:
Reduce unnecessary litigation volume
Lower administrative burden on the Income Tax Department
Improve efficiency in dispute resolution
Prioritise high-value and legally significant cases
Overall, the move is intended to streamline tax litigation and improve governance efficiency in the direct tax administration system.
