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 a 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 the 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 Consequently, the ministry estimated 843 income tax (I-T) cases to be withdrawn from the SC, 2,781 cases from HCs, and 717 from the ITAT—totaling 4,341 cases.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.
Bu hikaye Financial Express Mumbai dergisinin January 03, 2025 sayısından alınmıştır.
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Bu hikaye Financial Express Mumbai dergisinin January 03, 2025 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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