An Income-tax authority did not file an appeal to the Income-tax Appellate Tribunal against an order of the Commissioner (Appeals) decided against…
CA Final · Direct Tax Laws and International Taxation · MTP · November 2026
An Income-tax authority did not file an appeal to the Income-tax Appellate Tribunal against an order of the Commissioner (Appeals) decided against the Income-tax department on a particular issue in case of one assessee, Neha for assessment year 2025-26 on the ground that the tax effect of such dispute was less than the monetary limit prescribed by CBDT. In assessment year 2026-27, similar issue arose in the assessments of Neha and her Brother Vijay, which was decided by the Commissioner (Appeals) against the Department and where the tax effect of the dispute is not less than the prescribed monetary limits. Can the Income-tax department move an appeal to the Tribunal in respect of A.Y. 2026-27 against the orders of the Commissioner (Appeals) for Neha and her Brother Vijay?
Suggested Answer and Working Notes:
Under section 268A(1), the CBDT is empowered to issue orders, instructions or directions to the other income-tax authorities, fixing such monetary limits, as it may deem fit, to regulate filing of appeal or application for reference by any income-tax authority. Under section 268A(2), where an income-tax authority has not filed any appeal or application for reference on any issue in the case of an assessee for any assessment year, due to above-mentioned order/instruction/direction of the CBDT, such authority shall not be precluded from filing an appeal or application for reference on the same issue in the case of the same assessee for any other assessment year or any other assessee for the same or any other assessment year. Further, in such a case, it shall not be lawful for an assessee to contend that the income-tax authority has acquiesced in the decision on the disputed issue by not filing an appeal or application for reference in any case. In view of above provision, it would be in order for the Income-tax Department to move an appeal to the Tribunal against the orders of the CIT(A) in respect of A.Y. 2026-27 both for Neha and Vijay.
Topics: Appeals and Revision
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