The Union Finance ministry issued a press release on September 24, 2024, saying the Supreme Court (SC) had disposed of 573 direct tax cases with tax effect of less than ₹5 crore due to revised monetary limits for filing appeals. Budget 2024-25 increased the minimum monetary limit for appeals related to direct taxes, excise and service tax in Income Tax Appellate Tribunal (ITAT), high courts (HC), and the SC to ₹60 lakh, ₹2 crore and ₹5 crore. Consequently, the ministry estimated 843 income tax (I-T) cases to be withdrawn from the SC, 2,781 cases from HCs, and 717 from the ITAT—totalling 4,341 cases.
"This significant milestone aligns with the government's efforts to reduce tax litigation and promote ease of doing business," the release added. This is a good start in reducing the humungous tax litigation pending with various judicial forums.
The monetary impact of the withdrawal would be a maximum of ₹10,200 crore. According to the latest receipt Budget of July 2024, total I-T under dispute was ₹10.48 lakh crore as of 2022-23. The withdrawal would be less than 1% of the total I-T under dispute. Thus, high-pitch assessments beyond revised monetary limits are significant.
I-T under dispute more than doubled from ₹4.98 lakh crore in 2014-2015 to ₹10.48 lakh crore in 2022-23. So much for the promise of eliminating tax terrorism! Corporation tax (CT) disputes increased by 170% from ₹2.21 lakh crore in 2014-2015 to ₹5.98 lakh crore in 2022-23. CT in dispute for less than five years is ₹5.63 lakh crore, which is 94% of the total disputes. High-pitch assessments have continued over the past five years and litigation management has been very ineffective.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Trump comeback: Honda to go slow on new EVs
HONDA MOTOR WILL be cautious about starting production of new electric vehicles due to uncertainty about US President-elect Donald Trump's industrial policy, a senior executive of the Japanese automaker said on Tuesday.
Flying taxis are on the horizon
Taking Commuting To New Heights
Bid for 2036 Olympics takes pan-India route
● Bhubaneswar, Bhopal, Pune to join Ahmedabad
Pritish Nandy dies at 73
Veteran journalist, poet and filmmaker Pritish Nandy passed away in Mumbai on Wednesday, sources close to him said.
AI Policy to Get a Shot in the Arm
Like in other parts of the world, there are concerns that AI may reshape the Indian job market by creating new opportunities while also posing challenges such as job displacement due to automation.
Foxconn, Dixon Urge Govt to Pay ₹700 Cr in Pending PLI Subsidies
The government is reviewing the two requests, the people said.
India seeks NRI participation in 'Viksit Bharat'
THE 18TH PRAVASI Bharatiya Divas (PBD) convention kicked off here on Wednesday, with external affairs minister S Jaishankar calling upon NRIs and Persons of Indian Origin to actively participate in the quest for a 'viksit Bharat' (developed India).
No Pre-emptive Tariff Overhaul
Over a few years to FY23, India had seen a significant tariff escalation, reversing the trend of progressive reduction of these import barriers, primarily in the wake of the pandemic.
Oil pares gains on dollar strength
OIL PRICES TRIMMED earlier gains on Wednesday as the dollar strengthened but continued to find support from a tightening of supplies from Russia and other OPEC members and a drop in US crude stocks.
'Align AI and business goals for better results'
ENTERPRISES are increasingly recognizing the value of multi-cloud architectures and the ability to capitalize on the unique strengths of various cloud platforms to enhance their operational capabilities, says Shailender Kumar, senior vice-president and regional managing director of Oracle India and Netsuite JAPAC.
