The Association of Tax Lawyers has raised concerns with the Central Board of Direct Taxes (CBDT) regarding prolonged delays in the disposal of appeals at the National Faceless Appeal Centre (NFAC). Over five lakh appeals remain pending, including many where taxpayers have already submitted all required documentation. The delays have created significant challenges: unresolved disputes hinder access to higher appellate forums, taxpayers face mounting pressure from unresolved tax demands, and overall confidence in the faceless tax system has diminished. These delays undermine the intended efficiency of the government’s Faceless Tax Administration initiative. The Association has urged CBDT to implement a time-bound framework for disposing of appeals, prioritize older and high-stake cases, establish a formal monitoring and reporting mechanism, and introduce a grievance redressal system. These steps are proposed to ensure timely justice, reduce litigation backlog, and restore faith in the NFAC’s functioning.
ASSOCIATION OF TAX LAWYERS (Regd.-Delhi)
…… a Central Body of Indian Tax Lawyers
Lawyers Chamber, 30-DDU Marg, Rouse Avenue, New Delhi-110001
| NATIONAL PRESIDENT
AJAY SINHA Corporate Off:- 104, Lawyers Chamber 30-DDU Marg, Rouse Avenue, New Delhi Ph: 0120-4576000, +91 9810422203 E-mail: sinhaandsons@hotmail.com |
NATIONAL GENERAL SECRETARY
RAJNI KANT VERMA Secretariat Off :- A-560,Kamla Nagar Agra-282005 Ph: 9412257838, 9627849038 E-mail : rajnikant_adv@yahoo.co.in |
Date: 24th April’ 2025.
To
The Hon’ble Chairman
Central Board of Direct Taxes
Ministry of Finance
North Block, New Delhi – 110001
Subject: Representation Regarding Inordinate Delay in Disposal of Appeals by National Faceless Appeal Centre (NFAC)
Respected Sir,
I, on behalf of the Association of Tax Lawyers, a national forum of tax advocates having its esteemed members across India, desire to bring to your kind attention the grave concern and growing distress among professionals and taxpayers regarding the inordinate delay in the disposal of appeals filed before the National Faceless Appeal Centre (NFAC) and respective CIT(A) authorities.
As is widely acknowledged, approximately five lakh appeals are currently pending before the NFAC and Commissioners of Income Tax (Appeals). It has become a matter of public knowledge and concern that a large number of these appeals, including those where written submissions and rejoinders to remand reports called for have been filed long back by the assessee, continue to remain unattended and pending for reasons that are neither known nor communicated to the stakeholders.
This prolonged pendency has led to serious repercussions:
Uncertainty and prolonged litigation for taxpayers who are unable to proceed with second appellate remedies due to non-disposal at the first appellate stage;
Mounting demand and coercive recovery pressures arising from additions/disallowances contested in appeals, which remain unresolved for years;
Erosion of taxpayer confidence in the efficiency and responsiveness of the faceless appellate system introduced with great promise under the Government’s flagship ‘Faceless Tax Administration’ initiative.
In this backdrop, we humbly request your good self to kindly intervene in the matter and direct the NFAC to take urgent and proactive measures to expedite the disposal of pending appeals, particularly in cases where replies and rejoinders have already been submitted. We also propose that:
1. A time-bound schedule for disposal of appeals may be adopted and communicated publicly;
2. Priority be accorded to older appeals and those involving high-pitched assessments or repetitive issues;
3. A monitoring mechanism be introduced with regular reporting and accountability at the level of Principal Commissioners of Income Tax (Appeals);
4. A grievance redressal window be created for addressing delays and systemic hurdles in NFAC functioning.
We firmly believe that timely disposal of appeals will not only reduce pendency but also significantly boost taxpayer morale and improve the overall efficiency of tax administration.
We hope our representation will receive your kind consideration and necessary directions shall be issued in the interest of justice, fairness, and transparency in tax adjudication.
With highest regards,
For Association of Tax Lawyers
Yours Faithfully
(Rajni Kant Verma)
National General Secretary
Author Bio
WASTAGE OF TIME AND ENERFY. TOTALLY DEAF GOVERNMENT ON THE ISSUES OF FAIR TRIAL ETHICAS JUSTICE TO THE CITIZEN OF THE COUNTRY. EVEN THEY DO NOT CARE FOR THE COURT DIRECTION.