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CBDT Press Release On Low Tax Effect Appeals: Limits For Filing Dept Appeals Raised Substantially

The Ministry of Finance has announced a substantial enhancement in the limits for filing departmental appeals before the ITAT, Tribunal and Supreme Court. The impact of the new limits is that out of total cases filed by the Department in ITAT, 34% of cases will be withdrawn. In case of High Courts, 48% of cases will be withdrawn and in case of Supreme Court 54% of cases will be withdrawn. The total percentage of reduction of litigation from Department’s side will get reduced by 41%.

Ministry of Finance

Major Steps taken for Reducing Tax Litigations

Posted On: 11 JUL 2018 5:52PM by PIB Delhi

In order to reduce the long pending grievances of taxpayers and to minimise litigations pertaining to tax matters and to facilitate the Ease of Doing Business, Government of India has decided to increase the threshold monetary limits for filing Departmental Appeals at various levels, be it Appellate Tribunals, High Courts and the Supreme Court in the following manner :-

 

Sl. No.

Appeal Fora

Present limit for filing appeal

(In Rs.)

Enhanced limit

(In Rs.)

1.

ITAT / CESTAT

10 lakhs

20 lakhs

2.

High Courts

20 lakhs

50 lakhs

3.

Supreme Court

25 lakhs

1 Crore

 

This is a major step in the direction of litigation management of both direct and indirect taxes as it will effectively reduce minor litigations and help the Department to focus on high value litigations.

 

In case of CBDT, out of total cases filed by the Department in ITAT, 34% of cases will be withdrawn. In case of High Courts, 48%of cases will be withdrawn and in case of Supreme Court 54% of cases will be withdrawn. The total percentage of reduction of litigation from Department’s side will get reduced by 41%. However, this will not apply in such cases where substantial point of law is involved.

 

Similarly, in case of CBIC, out of total cases filed by the Department in CESTAT, 16% of cases will be withdrawn. In case of High Courts, 22% of cases will be withdrawn and in case of Supreme Court 21% of cases will be withdrawn. The total percentage of reduction of litigation from Department’s side will get reduced by 18%. However, this will not apply in such cases where substantial point of law is involved.

 

This step will also reduce future litigation flow from the Department side.


One comment on “CBDT Press Release On Low Tax Effect Appeals: Limits For Filing Dept Appeals Raised Substantially
  1. Varaprasad Daitha says:

    The finance ministry has given the percentages of pending litigations but did not give the tax effect component involved in the total cases. Is it not practicable to elicit or does not want to give the figures.

    Is it the way of reduction of pending litigations or suppressing the doing justice in the form of withdrawals? Or is it a boon given to some of the assessees.

    For instance, after assessment year 2015-16 the high pitches assessments in majority of cases had been reduced to the lowest level. It was only in the case of reopened assessments or survey assessments or search and seizure assessments such a volume of tax effect of Rs. 20 lakhs and above will be attracted.

    Does the finance ministry want to nullify the surveys and search & seizure operations and also reopened assessments with the prior approval of Principal Commissioners and above rank or it want to protect the heads of the department from the onslaught of disciplinary actions purported by the Chairman CBDT?

    Please do not think that I am against the assessees. But the intentions of the finance ministry are not clear.

    The same finance ministry was not ready to accept the decision of Supreme Court in respect of many disciplinary proceedings against promotee officers.

    Why these double standards?

1 Pings/Trackbacks for "CBDT Press Release On Low Tax Effect Appeals: Limits For Filing Dept Appeals Raised Substantially"
  1. […] to the press release dated 11th July 2018 of the Ministry of Finance, the CBDT has issued Circular No 3/2018 dated 11th July 2018 by which the precise scope of the move […]

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