Amit Maheshwari of Ashok Maheshwary & Associates LLP Speaks to LiveMint on 'I-T dilutes move to cap appeals based on monetary value'

CBDT circular said adverse judgements on specified issues should be ‘contested on merits, notwithstanding that the tax effect entailed is less than the monetary limits specified’.

More than a month after saying it will appeal adverse tax verdicts only in cases involving sums of money above certain thresholds, the taxman has diluted the decision.

A central board of direct taxes (CBDT) circular issued to all income tax principal commissioners on 20 August said adverse judgements on specified issues should be “contested on merits, notwithstanding that the tax effect entailed is less than the monetary limits specified”.

Accordingly, taxmen can file appeals in cases that involve foreign black money or accounts, cases challenging constitutional validity of IT Act provisions, where rules issued by the tax department were held to be illegal, cases involving additions based on inputs received from other investigative agencies, or where the tax department has initiated prosecution.

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