Apex court disposes of 573 direct tax appeals, nearly 5,000 tax disputes to be withdrawn

Following the Budget move to revise the monetary limit for filing appeals in tax litigation matters, the Supreme Court on Tuesday disposed of 573 direct tax cases where the tax effect is less than ₹5 crore, the Finance Ministry said.

Finance Minister Nirmala Sitharaman had enhanced the monetary limits for filing appeals related to direct taxes, excise and service tax matters to ₹60 lakh, ₹2 crore and ₹5 crore, in tax tribunals, High Courts and the Supreme Court, respectively. These limits were earlier pegged at ₹50 lakh, ₹1 crore and ₹2 crore, respectively.

With the Central Boards of Direct Taxes, and Indirect Taxes and Customs (CBDT and CBIC) issuing orders to execute the decision, as many as 4,341 direct tax cases and 1,044 legacy central excise and service tax cases pending before various appellate fora will be withdrawn over the course of time, the Ministry said.

Nearly 1,100 of these cases are pending with the apex court. “These measures on the direct 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,” the Ministry informed.

Published - September 24, 2024 08:05 pm IST