A man browses files. Photographer: Vivek Prakash/Bloomberg

CBDT Directs Taxman To Withdraw Select Appeals By Month-End

The Central Board of Direct Taxes has directed the taxman to withdraw all appeal cases, pertaining to certain monetary limits and parameters, from various courts by this month-end as part of the government's drive to end frivolous litigation.

CBDT Member (Revenue) Neena Kumar recently wrote a letter to all range heads and principal chief commissioners of the department to "conclude" the exercise of identification and closing of such cases by holding "personal meetings with senior officials of registry of Income Tax Appellate Tribunal and High Courts so that the appeal withdrawal process is completed quickly".

The CBDT frames policy for the I-T Department.

The move assumes significance as the NDA government would present the interim Budget for 2019-20 on Feb. 1. The country will go for general elections post this, probably in the months of March-April.

Kumar, in her letter, added that "litigation management is one of the prime areas of focus of central government" as she pointed out that the CBDT had issued a detailed circular on this subject in July last year.

As part of this 2018 circular, the CBDT had hiked the threshold limit for the department to file appeals in tribunals and courts (High Court and Supreme Court) to bring down litigation between the I-T Department and the assessee substantially.

It had then told the department that appeals shall not be filed in ITAT if the monetary limit involved in the case is within Rs 20 lakh. The minimum limit is Rs 50 lakh for high courts and Rs 1 crore for the apex court.

"It is clarified that an appeal should not be filed merely because the tax effect ina case exceeds the monetary limits prescribed above,” the CBDT had said. “Filing of appeal in suchcases is to be decided on merits of the case."

The member in her latest communication said that as per the data with the CBDT, "substantial scope" of withdrawal of identified appeals exists.

The entire exercise of withdrawal of appeals must conclude by January-end and withdrawal figures should be intimated to the board by January 31, she said in her letter.

Also read: Tax Department’s Prosecution Notices Galore