Monetary Limits for Filing Income Tax Appeals before HC Enhanced to Rs. 2 Crores: Chhattisgarh HC

Chhattisgarh High Court revised the monetary thresholds for filing income tax appeals, increasing the limit from ₹50 lakh to ₹2 crore for departmental appeals and from ₹1 crore to ₹5 crore for taxpayer appeals. This administrative order aligns with the CBDT's litigation policy to reduce frivolous appeals clogging the judiciary. The new thresholds apply prospectively to all pending and fresh matters from June 2025. Exceptions remain for cases involving substantial questions of law or international tax principles. The Registrar will now conduct mandatory monetary verification before admitting appeals, with summary rejection for non-compliant filings. This move follows Supreme Court directives to reduce tax litigation, with statistics showing 58% of pending high court appeals involve amounts below revised limits. The department has constituted special units to withdraw eligible cases within 90 days. While reducing judicial burden, practitioners caution that valuable legal questions in small-value cases may go unaddressed. Parallel amendments are expected in CESTAT and GST appellate rules to maintain consistency across tax statutes.