
The Income Tax Department has withdrawn 5,978 appeals and decided not to file another 17,489 after higher monetary limits were introduced for departmental tax appeals. The figures, disclosed by Finance Minister Nirmala…
The Income Tax Department has withdrawn 5,978 appeals and decided not to file another 17,489 after higher monetary limits were introduced for departmental tax appeals. The figures, disclosed by Finance Minister Nirmala Sitharaman in the Lok Sabha, cover cases before the Income Tax Appellate Tribunal, High Courts and the Supreme Court.
The revised thresholds are tax effects above Rs 60 lakh for the ITAT, Rs 2 crore for High Courts and Rs 5 crore for the Supreme Court. The government estimates that disputed tax demand has fallen by Rs 16,688.68 crore. The limits apply to departmental appeals and do not prevent taxpayers from challenging orders below these amounts. They also do not cancel a tax demand or guarantee victory, and specified exceptions allow some appeals regardless of tax effect.
Claims that the move either wipes out taxpayers’ liabilities or hands the department a blanket licence to avoid court both miss the point. The thresholds manage government appeals, while the underlying assessment and the taxpayer’s own remedies remain separate. The real test is whether the department now spends less time on low-value cases without allowing disputed legal issues to escape review under the listed exceptions. Future parliamentary data on withdrawals and new filings should show whether that balance holds.
Source: livemint.com
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