expedite disposal of disputed tax demands, withdraw below new threshold appeals within 3 months
Finance Minister Nirmala Sitharaman on Monday directed the Income Tax Department to accelerate disposal of disputed tax demands. She also asked the department to withdraw all the appeals falling below the new threshold within three months.
Sithraman was addressing the Conclave of Principal Chief Commissioners of Income-tax (Pr.CCsIT). “The Union Finance Minister directed all Principal Chief Commissioners of Income Tax (PrCCsIT) to prioritise and accelerate the disposal of disputed tax demands that are currently pending before the faceless appellate authorities. This is aimed at reducing litigation backlog and ensuring timely resolution, thereby enhancing taxpayer trust in the system,” a statement issued by the Finance Ministry said.
According to a Parliamentary committee report, as on September, 2024 around 5.49 lakh appeals are pending before the Commissioner of Income Tax (Appeals), short for CIT(A) and the National Faceless Appeal Centre (NFAC). This involves an amount of Rs. 18.16 lakh crore.
The FM instructed that all departmental appeals falling below the revised monetary thresholds as notified in recent policy changes be identified and withdrawn within a period of three months. As per the announcements in the Union Budget 2024-25, the monetary thresholds for filing tax dispute appeals by the department are Rs. 60 lakhs for the Income Tax Appellate Tribunal (ITAT): Increased from Rs. 50 lakh to Rs. 60 lakh, Rs. 2 crore for high courts and Rs. 5 crore for the Supreme Court.
