Major Steps Taken for Reducing Tax
Litigations
In order to reduce the
long pending grievances of taxpayers and to minimise
litigations pertaining to tax matters and to facilitate the Ease of Doing
Business, Government of India has decided to increase the threshold monetary
limits for filing Departmental Appeals at various levels, be it Appellate
Tribunals, High Courts and the Supreme Court in the following manner :-
|
Sl. No. |
Appeal Fora |
Present limit for filing appeal (In Rs.) |
Enhanced limit (In Rs.) |
|
1. |
ITAT / CESTAT |
10 lakhs |
20 lakhs |
|
2. |
High Courts |
20 lakhs |
50 lakhs |
|
3. |
Supreme Court |
25 lakhs |
1 Crore |
This is a major step
in the direction of litigation management of both direct and indirect taxes as
it will effectively reduce minor litigations and help the Department to focus
on high value litigations.
In case of CBDT, out
of total cases filed by the Department in ITAT, 34% of cases will be
withdrawn. In case of High Courts, 48% of cases will be withdrawn and in
case of Supreme Court 54% of cases will be withdrawn. The total
percentage of reduction of litigation from Department’s side will get reduced
by 41%. However, this will not apply in such cases where substantial
point of law is involved.
Similarly, in case of
CBIC, out of total cases filed by the Department in CESTAT, 16% of cases
will be withdrawn. In case of High Courts, 22% of cases will be
withdrawn and in case of Supreme Court 21% of cases will be withdrawn.
The total percentage of reduction of litigation from Department’s side will get
reduced by 18%. However, this will not apply in such cases where
substantial point of law is involved.
This step will also
reduce future litigation flow from the Department side.