The income tax (I-T) department has laid out a road map to reduce litigation with taxpayers, which could unlock revenue of a few lakh crores of rupees if most decisions go in the government’s favour. Almost 90 per cent of the high value I-T cases involving demands of over Rs 10 lakh will be disposed this year by the commissioner of appeals, the first appellate authority.
About Rs 4 lakh crore of revenue is locked in disputes beforeappellate authorities. There are 215,000 cases before the CIT(Appeals) alone. Of this, 95,560 cases will be cleared by the existing 243 CITs in the current financial year. Another 119 CITs to be set up under cadre restructuring of the Central Board of Direct Taxes (CBDT) will dispose 38,500 cases this year. The two put together translate into clearance of 62 per cent of the pending cases.
About 20 per cent or 42,322 cases involve a disputed demand of Rs 10 lakh and above and it has been decided to clear these cases on priority. According to the plan discussed at Finance Minister Arun Jaitley’s meeting with chief commissioners of income tax, “CITs will plan their work in a manner that 90 per cent of the high-value appeals are disposed off during the year”.
The CBDT has divided cases into four categories — high-value demand appeals, other appeals filed before April 2013, appeals filed between April 2013 and March 2014, and those filed in the current financial year — the first are termed the most urgent and the last being the lowest on priority. However, CITs have been given freedom to take some cases before others.
To ensure rational distribution of workload, intra-city and inter-city reallocation of work among CITs might be allowed. At present, some CITs are overburdened with cases, while others are under-worked. Every CIT will have to clear at least 150 high value cases. Besides, appeals pending for more than three years would be given priority.
To ensure that the deadlines are met disposal of appeals would be monitored by principal chief commissioners of income tax and director generals of income tax on quarterly basis.
Last week, the finance ministry set up a panel to assess the effectiveness of the first-level appellate authorities and suggest measures to bring down litigation in the income tax department.
Addressing the income tax officers on Monday, Revenue Secretary Shaktikanta Das had said they should find innovative means to achieve their revenue targets and work in a non-adversarial and non-intrusive manner. “The focus and efforts of the officers of the department should be to reduce tax arrears which are to the tune of Rs 4 lakh crore and higher tax recovery,” Das said. He also asked the officers to reduce tax litigation and avoid frivolous and avoidable litigation in this regard.
Source:http://www.business-standard.com/article/economy-policy/govt-to-dispose-of-90-high-value-disputed-tax-cases-by-march-114072201259_1.html
About Rs 4 lakh crore of revenue is locked in disputes beforeappellate authorities. There are 215,000 cases before the CIT(Appeals) alone. Of this, 95,560 cases will be cleared by the existing 243 CITs in the current financial year. Another 119 CITs to be set up under cadre restructuring of the Central Board of Direct Taxes (CBDT) will dispose 38,500 cases this year. The two put together translate into clearance of 62 per cent of the pending cases.
About 20 per cent or 42,322 cases involve a disputed demand of Rs 10 lakh and above and it has been decided to clear these cases on priority. According to the plan discussed at Finance Minister Arun Jaitley’s meeting with chief commissioners of income tax, “CITs will plan their work in a manner that 90 per cent of the high-value appeals are disposed off during the year”.
The CBDT has divided cases into four categories — high-value demand appeals, other appeals filed before April 2013, appeals filed between April 2013 and March 2014, and those filed in the current financial year — the first are termed the most urgent and the last being the lowest on priority. However, CITs have been given freedom to take some cases before others.
To ensure rational distribution of workload, intra-city and inter-city reallocation of work among CITs might be allowed. At present, some CITs are overburdened with cases, while others are under-worked. Every CIT will have to clear at least 150 high value cases. Besides, appeals pending for more than three years would be given priority.
To ensure that the deadlines are met disposal of appeals would be monitored by principal chief commissioners of income tax and director generals of income tax on quarterly basis.
Last week, the finance ministry set up a panel to assess the effectiveness of the first-level appellate authorities and suggest measures to bring down litigation in the income tax department.
Addressing the income tax officers on Monday, Revenue Secretary Shaktikanta Das had said they should find innovative means to achieve their revenue targets and work in a non-adversarial and non-intrusive manner. “The focus and efforts of the officers of the department should be to reduce tax arrears which are to the tune of Rs 4 lakh crore and higher tax recovery,” Das said. He also asked the officers to reduce tax litigation and avoid frivolous and avoidable litigation in this regard.
Source:http://www.business-standard.com/article/economy-policy/govt-to-dispose-of-90-high-value-disputed-tax-cases-by-march-114072201259_1.html
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