Section 373

Section 373: filing of appeal by an income-tax authority

Section 373 addresses the Department's own side of the appeals process. It lets the Board issue monetary-limit instructions to regulate when an income-tax authority files an appeal, and importantly clarifies that not filing an appeal in one case (because it falls below such a limit) does not stop the Department from appealing the same issue in another case or year, and does not amount to the Department accepting the taxpayer's position.

This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.

Monetary limits for departmental appeals

The Board may, from time to time, issue orders, instructions or directions to income-tax authorities, fixing monetary limits it considers fit, to regulate the filing of appeals by an income-tax authority under this Chapter.

Not filing an appeal in one case does not bind the Department elsewhere

Where, following such orders/instructions/directions, an income-tax authority has not filed an appeal on an issue for one assessee in one tax year, this does not prevent that authority from filing an appeal on the same issue for the same assessee in a different tax year, or for a different assessee in the same or a different tax year.

Where no appeal has been filed under this mechanism, it is not lawful for an assessee (as a party to another appeal) to argue that the Department has "acquiesced" in the decision on that disputed issue simply because it did not appeal in another case.

The Appellate Tribunal or Court hearing such an appeal must have regard to the Board's orders/instructions/directions and the circumstances under which an appeal was or was not filed in the relevant case.

Frequently asked questions

If the Department doesn't appeal my case because of a monetary limit, does that set a precedent for other cases?

No - Section 373(2) and (3) make clear that not filing an appeal in one case under the Board's monetary-limit instructions does not stop the Department appealing the same issue in another case, and cannot be treated as the Department having accepted ("acquiesced in") the disputed issue.