The CBDT has revealed in the Central Action Plan 2018 that the total demand stayed by Courts\/ITAT as on 01.04.2018 is a whopping sum of Rs. 87,035 crore. It is pointed out that the appeals have been pending for several years and Departmental Representatives\/Counsel are unable to press for disposal in the absence of adequate resources and support from the field formations. In order to tackle the back-log of litigation, the CBDT has formulated a concerted and focused strategy. The CBDT has also stipulated time limits within which the targets are required to be completed. <\/p>\n
PART C \u2013 APPEALS WITH ITAT\/COURTS<\/p>\n
5.\tThere are a large number of cases where appeals for various assessment years, involving similar issues, are pending at different levels in the ITAT\/High Court\/Supreme Court. In many cases, such appeals have been pending for several years and Departmental Representatives\/Counsel are unable to press for disposal in the absence of adequate resources and support from the field formations. This back-log of litigation not only blocks collectible revenues (total demand stayed by Courts\/ITAT as on 01.04.2018 is Rs. 87,035 crore), but also generates further litigation due to similar issues arising in assessments being made year after year. Thus, even though there has been a reduction in the number of appeals being filed by the Department, the number of disputes pending in Courts\/ITAT has been increasing over the years. <\/p>\n
6.\tManaging litigation pending in Courts\/ITAT therefore needs to be addressed in a concerted and focused manner as under: <\/p>\n
6.1\tEvery PCIT shall identify top 30 litigation cases of assesses in his Charge where important issues are pending at one or more appellate levels in ITAT\/HC\/SC as also with CIT(A), based on: <\/p>\n
\u2022\tImportance of the issue
\n\u2022\tRevenue potential
\n\u2022\tRecurring nature of the issue
\n\u2022\tStay granted appeals\/cases <\/p>\n6.2\tAfter identification, the cases with common or similar issue(s) shall be bunched. Where there are common or similar issues in cases across CCIT regions within a PCCIT region, the bunching shall be done at the level of PCCIT. <\/p>\n
6.3\tThe PCCIT or CCIT shall then nominate a resource person (of the level of PCIT\/CIT) or form a team (headed by a PCIT\/CIT) for each case or bunch of cases. Where cases involve issues relating to international taxation and\/or transfer pricing, officers from International Taxation and\/or Transfer Pricing charges may be involved. <\/p>\n
6.4\tThe resource person or the team (as the case may be) shall devise the strategy required to deal effectively and efficiently with the case(s) and appeals lying at different levels. They shall prepare written briefs and submissions and shall assist CIT (DR)\/Department Counsel on real time basis in proper representation before ITAT\/HC\/SC, including being present at hearings to the extent possible, filing written submissions and taking other actions as required. They shall also make required efforts for early fixation of cases, vacation of stay orders and such other matters. The Assessment Wing shall be actively involved in defending the interest of revenue in the litigation affairs. <\/p>\n
6.5\tIn order to ensure effective representation in all other category of top litigation cases (non-bunching cases) the PCIT concerned shall constitute a team headed by Range head for effective representation before ITAT\/HC\/SC which shall include drafting of briefs and proper briefing to CIT(DR), Sr. Standing Counsel, ASG, SG and AG as the case may be. The team will periodically monitor proceedings before ITAT\/HC\/SC. The briefing team for ASG\/SG\/AG shall be headed by PCIT\/CCIT and it is expected that PCIT will personally attend these cases before HC\/SC. <\/p>\n
7.\tIt has been noticed that proper attention has not been paid to the prosecution cases resulting in long drawn prosecution proceeding before the courts and award of punishment in very small number of cases. There is a need to address this problem in a concerted and focused manner. The PCITs shall ensure drafting and filing of error free prosecution complaints in consultation with Standing Counsel of the department and effective representation before Courts by way of proper briefing to Standing Counsel. The PCCIT\/CCIT shall identify prosecution complaints pending for more than two years and will devise case-specific litigation strategy for effective representation to enable the Courts to take a final view in the matter at the earliest. <\/p>\n
8.\tThe following targets are laid down in this regard: <\/p>\n
TABLE 5<\/p>\n
MANAGING LITIGATION IN COURTS\/ITAT<\/p>\n
\n
\n 1<\/td>\n Reconciliation by PCITs\/CITs of the total pendency of appeals before ITAT\/HC\/SC<\/td>\n By 31.07.2018<\/td>\n<\/tr>\n \n 2<\/td>\n Completion of process of withdrawal of appeals as mandated separately by Board<\/td>\n By 31.07.2018<\/td>\n<\/tr>\n \n 3<\/td>\n (a) Identification of 30 top litigation cases as above<\/td>\n By 31.07.2018<\/td>\n<\/tr>\n \n <\/td>\n (b) Bunching of cases and nomination of resource persons<\/td>\n By 15.08.2018<\/td>\n<\/tr>\n \n <\/td>\n (c) Preparation of written submissions<\/td>\n By 31.08.2018<\/td>\n<\/tr>\n \n <\/td>\n (d) Assistance to CIT(DR)\/Department Counsel<\/td>\n On-going<\/td>\n<\/tr>\n<\/table>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":" The CBDT has revealed in the Central Action Plan 2018 that the total demand stayed by Courts\/ITAT as on 01.04.2018 is a whopping sum of Rs. 87,035 crore. It is pointed out that the appeals have been pending for several years and Departmental Representatives\/Counsel are unable to press for disposal in the absence of adequate resources and support from the field formations. In order to tackle the back-log of litigation, the CBDT has formulated a concerted and focused strategy. The CBDT has also stipulated time limits within which the targets are required to be completed<\/p>\n