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 The impact of the new limits is that out of total cases filed by the Department in ITAT, 34% of cases will be withdrawn. In case of High Courts, 48% of cases will be withdrawn and in case of Supreme Court 54% of cases will be withdrawn.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%.
Major Steps taken for Reducing Tax Litigations
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In case of CBDT, out of total cases filed by the Department in ITAT, 34% of cases will be withdrawn. In case of High Courts, 48%of cases will be withdrawn and in case of Supreme Court 54% of cases will be withdrawn.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Similarly, in case of CBIC, out of total cases filed by the Department in CESTAT, 16% of cases will be withdrawn. In case of High Courts, 22% of cases will be withdrawn and in case of Supreme Court 21% of cases will be withdrawn.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.
In order to reduce the long pending grievances of taxpayers & to minimise litigations pertaining to tax matters & to facilitate the Ease of Doing Business, the Govt of India has decided to increase the threshold monetary limits for filing Departmental Appeals at various levels.
— Ministry of Finance (@FinMinIndia) July 11, 2018
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.
— Ministry of Finance (@FinMinIndia) July 11, 2018
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.
— Ministry of Finance (@FinMinIndia) July 11, 2018
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.— Ministry of Finance (@FinMinIndia) July 11, 2018
does this monitory limit applies to the departmental appeals only or appeals filed by the appellant .If yes then where the CIT(A) confirms the order having tax effect below limit Appellants shall be barred by this limitations to file further appeal in ITAT/HC/SC. in that case wahat will be legal way to fight ?
DOES THIS APPLY TO THE APPELLANT ASSESSE OR ON THE DEPARTMENTAL APPEALS
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?