The CBDT has issued a Central Action Plan 2018-19 in which it is inter alia stated that there are 3,21,843 appeals pending before the CsIT(A) as on 01.04.2018. The demand involved in these appeals is a whopping Rs. 6.38 lakh crore.

In order to reduce the number of appeals pending before the CIT(A), the CBDT has issued a clear-cut action plan in which specific targets for disposal of appeals have been assigned. The CBDT has also offered incentives to CsIT(A) for passing “quality” orders. Incentives are offered where the CIT(A) enhances the assessment, strenghtens the stand of the AO or levies penalty u/s 271(1)(c) of the Act.

The AOs have been directed to make proper representation before the CIT(A) either by attending personally or by filing written submissions.

PCsIT and CCsIT have also been assigned responsibilities to ensure that the CsIT(A) and AOs discharge their duties in the manner envisaged by the CBDT

The CBDT has issued two office Orders bearing Nos. 109 and 110 of 2018, both dated 12th July 2018, to state that the ad-hoc appointments of several Income Tax Officers to the grade of Assistant Commissioner of Income Tax has been extended by the Hon’ble President

Further 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 to withdraw low tax effect appeals has been explained. In particular, the CBDT has explained the meaning of the term “tax effect”. It has also been considered whether the decision to withdraw appeals which are below the specified limits should be given prospective or retrospective effect. The exceptions to when appeals can be contested even when they are below the prescribed limits are also clearly specified