The Union Budget 2024-25 introduced enhanced monetary limits for filing appeals related to Direct Taxes, Excise, and Service Tax across various judicial forums. In a notable response, the Supreme Court disposed of 573 direct tax cases where the tax effect was under ₹5 crore, reflecting the revised appeal thresholds. The new limits set by the budget are ₹60 lakh for the Income Tax Appellate Tribunal (ITAT), ₹2 crore for High Courts, and ₹5 crore for the Supreme Court. These changes aim to reduce the backlog of pending cases and alleviate tax litigation burdens. The Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) have issued orders to implement these revisions, which are expected to result in approximately 4,341 direct tax cases and 1,044 indirect tax cases being withdrawn from various forums. In addition to the increased limits, the government plans to assign more officers to expedite appeal hearings, particularly for substantial tax amounts. Overall, these measures are designed to enhance the ease of doing business and living in India by streamlining tax procedures and minimizing litigation.
Ministry of Finance
Union Budget 2024-25 provided for an enhanced monetary limit for filing appeals related to Direct Taxes, Excise and Service Tax in various judicial fora
Hon’ble Supreme Court today disposed off 573 direct tax cases in view of the revised monetary limit of filing of appeals
The measures are expected to significantly reduce the burden of tax litigation and expedite the resolution of tax disputes in alignment with Government’s efforts to promote ‘Ease of Living’ and ‘Ease of Doing Business’
CBDT and CBIC had issued necessary orders for implementation of the amendment
Posted On: 24 SEP 2024 6:09PM by PIB Delhi
The Hon’ble Supreme Court today disposed off 573 direct tax cases where the tax effect is less than ₹5 crore, in view of the revised monetary limit of filing of appeals.
This significant milestone aligns with the government’s efforts to reduce tax litigation and promote Ease of Doing Business.
The Union Budget 2024-25 provided for an enhanced monetary limit for filing appeals related to Direct Taxes, Excise and Service Tax in the Tax Tribunals, High Courts and Supreme Court and the limits were increased to ₹60 lakh, ₹2 crore and ₹5 crore respectively.
In pursuant to the Budget 2024-25 announcement, the CBDT and CBIC had issued necessary orders to enhance the monetary limit for filing appeals in their respective domains. As a result, it is expected that the cases pending before various appellate fora will come down and reduce tax litigation.
Direct Tax
As per the announcements in the Union Budget 2024-25, the monetary thresholds for filing tax dispute appeals by the department were enhanced as follows:
- For Income Tax Appellate Tribunal (ITAT): Increased from ₹50 lakh to ₹60 lakh.
- For High Courts: Increased from ₹1 crore to ₹2 crore.
- For Supreme Court: Increased from ₹2 crore to ₹5 crore.
As a result of these revised limits, it is estimated that around 4,341 cases will be withdrawn from various judicial forums over the course of time:
- ITAT: 717 cases
- High Courts: 2,781 cases
- Supreme Court: 843 cases
Indirect Taxes
Similarly, the limit for filing appeals for the specified legacy Central Excise & Service Tax cases was increased:
- For CESTAT (Customs Excise and Service Tax Appellate Tribunal), the limit was increased to ₹60 lakh from ₹50 lakh
- For the High Court, the limit was increased to ₹2 crore from ₹1 crore.
- For the Supreme Court, the limit was increased to ₹5 crore from ₹2 crore.
As a result of these revised limits, it is estimated that around 1,044 cases pertaining to specified legacy Central Excise & Service Tax cases are estimated to be withdrawn from various judicial forums:
- Supreme Court: 253 appeals
- High Courts: 539 appeals
- CESTAT: 252 appeals
These measures on the Direct tax and Indirect tax front are expected to significantly reduce the burden of tax litigation and expedite the resolution of tax disputes.
In addition, steps have been taken to deploy more officers dedicated to hearing and deciding appeals, particularly those involving significant tax amounts.
These initiatives reflect the government’s commitment to providing a conducive environment for businesses and enhancing taxpayer services. By minimising litigation and simplifying tax procedures, the aim is to improve the ‘ease of living’ and Ease of Doing Business across the country.
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