The Income Tax Department is initiating a significant drive to address a backlog of over 540,000 appeals, with many more pending at higher judicial levels. To expedite this process, the Central Board of Direct Taxes (CBDT) has set targets for Commissioners of Income Tax (Appeals) to resolve a minimum of 150 appeals by June 30th. However, systemic issues such as lengthy delays before the first hearing and a reliance on precedent by assessing officers contribute to the ongoing problem, prompting calls for reforms including time limits for resolutions and enhanced judicial infrastructure.
As of January 31 this year, a staggering 5,44,205 appeals awaited resolution within the corridors of the Income Tax Department, with an additional 63,246 languishing at various levels of appellate authorities including Income Tax Appellate Tribunals (ITATs), High Courts, and the Supreme Court. Despi
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FAQ :
As of January 31st, there were 544,205 appeals pending within the Income Tax Department, with an additional 63,246 appeals at various appellate authorities.
The CBDT's 100-day action plan for FY25 requires each Commissioner of Income Tax (Appeals) to dispose of at least 150 appeals by June 30th.
Key challenges include the long wait time for the first hearing, often over a year, and assessing officers' tendency to rely on past decisions, leading to unnecessary additions and subsequent appeals.
Suggested reforms include imposing maximum time limits for appeal resolution, considering an amnesty scheme for one-time settlements, increasing judicial strength, creating specialised benches, and improving the digital framework.
No, there is a significant gap. As of July 2023, there were approximately 230 active Commissioners against a sanctioned strength of 349.