The Finance Ministry has decided against introducing statutory time limits for resolving income tax appeals, despite a significant backlog of over 5 lakh cases. They argue that appellate proceedings are judicial in nature and imposing arbitrary deadlines could compromise the quality of judgments. Instead, the Ministry is focusing on administrative improvements, which have led to a record 1.72 lakh appeals being disposed of in 2024-25, surpassing new filings. However, tax professionals are concerned about the lack of accountability and the potential for continued delays, contrasting this with other bodies that do have mandated timelines.
Despite mounting pressure from stakeholders and over 5 lakh pending appeals at the Commissioner of Income Tax (Appeals) [CIT (A)] level, the Finance Ministry has decided against introducing statutory deadlines for the disposal of income tax appeals under the proposed Income Tax Bill, 2025.
The Select Committee of the Lok Sabha, which reviewed the Bill, received multiple representations from tax experts and industry bodies urging the government to include a defined time frame for disposing of ap
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FAQ :
No, the Finance Ministry has decided against introducing statutory time limits for the disposal of income tax appeals under the proposed Income Tax Bill, 2025.
The Ministry cites the judicial nature of appellate proceedings, stating that imposing arbitrary timelines could risk compromising the quality of adjudication. They believe judicial proceedings cannot be rushed.
There are over 5 lakh pending appeals at the Commissioner of Income Tax (Appeals) [CIT (A)] level.
The Ministry is pursuing improvements through administrative measures. In 2024-25, a record 1.72 lakh appeals were disposed of, exceeding new filings and reducing overall pendency.
Yes, for example, the Dispute Resolution Panel (DRP), which handles international tax disputes, is mandated by law to deliver rulings within nine months.
Tax professionals are concerned about the lack of statutory accountability and the potential for continued delays and prolonged uncertainty for taxpayers.