Income Tax Department initiates measures to reduce litigation

In order to speed up pending litigation of income tax related cases, the department has made a few changes to the appeal & litigation process.

  • The monetary limit for filing of appeals by the Department before the Income Tax Appellate Tribunal has been revised to tax effect of Rs 10lakhs instead of earlier limit of Rs 4lakhs.
  • The monetary limit for filing of appeals by the department before the High Courts has been revised to tax effect of Rs. 20 Lakhs from the present limit of Rs. 10 Lakhs
  • The limits are applicable retrospectively to pending appeals also.
  • Pending appeals below these revised limits may be withdrawn or not pursued.
  • CBDT shall also constitute a collegium of Chief Commissioners of Income Tax. This collegium will consider withdrawal of appeals filed by the Department in cases involving tax effect above the revised monetary limit from the High Courts if no question of law is involved, the issue is considered settled by the Department or the appeal is no longer relevant in view of subsequent amendment.

The department hopes to reduce pending litigation by 50% and provide relief to tax payers.


As per press release of CBDT dated 15th December 2015. Also as per Circular No.21/2015 and O.M. bearing

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