Income Tax Dept Targets Disposal of 2 Lakh Appeals Worth Rs 10 Lakh Crore in FY26

The Income Tax Department of India has embarked on an ambitious initiative to address the substantial backlog of pending appeals. As of January 31, 2024, approximately 5.44 lakh appeals were awaiting resolution at the Commissioner of Income Tax (Appeals) level, with an additional 63,246 cases pending across the Income Tax Appellate Tribunals (ITATs), High Courts, and the Supreme Court .
Supreme Court .

Key Measures Undertaken
To expedite the disposal process, the Central Board of Direct Taxes (CBDT) has implemented several strategies:

100-Day Action Plan: Each Commissioner of Income Tax (Appeals) is tasked with disposing of at least 150 appeals by June 30, 2024 .
The Financial Express


Monetary Threshold Adjustments: The CBDT has increased the monetary limits for departmental appeals to ₹60 lakh for ITAT, ₹2 crore for High Courts, and ₹5 crore for the Supreme Court. This adjustment has led to the withdrawal of 4,951 appeals and the decision not to file 3,120 others, thereby reducing litigation .


Focus on High-Value Cases: Priority is given to disposing of appeals involving demands of ₹50 crore and above, aiming for their resolution within the current financial year .
The Times of India

The Financial Express

The New Indian Express


Challenges and Recommendations
Despite these efforts, the backlog remains significant. Tax practitioners have highlighted that some appeals have been pending for over five years, causing prolonged uncertainty for taxpayers .
Outlook Money

To address these challenges, experts suggest:

Filling Vacant Positions: Accelerating the appointment of Commissioners of Income Tax (Appeals) to ensure adequate manpower .
Outlook Money

The Financial Express


Enhancing Digital Infrastructure: Implementing robust digital systems to streamline the appeals process.
Hindustan Times

A2Z Taxcorp

Target : Expect More. Pay Less.


Establishing Specialized Benches: Creating dedicated benches for complex cases to expedite their resolution.

Implications
Successfully clearing the backlog could unlock substantial revenue, with estimates suggesting that over ₹2.2 lakh crore is currently tied up in pending appeals . This initiative not only aims to bolster the government's fiscal position but also seeks to alleviate the prolonged uncertainty faced by taxpayers.
Hindustan Times

The department's concerted efforts reflect a commitment to enhancing efficiency and transparency in tax administration, which could foster greater trust among taxpayers and improve compliance rates.