By Sanjay Sanghvi, Ashish Mehta, Rahul Jain

Recently, the Central Board of Direct Taxes (CBDT) vide circular (Circular) dated 11 July 2018 had revised the monetary thresholds of the ‘tax effect’ on matters, below which an appeal should not be filed by the Income-tax Department (Tax Department) with certain exceptions carved out in Paragraph 10 (Para 10) of the Circular.

For the cases covered in Para 10, even if the tax effect of an appeal is lower than the revised monetary threshold, the Tax Department can still contest the issue on merits before the higher appellate authorities.