After the amendment in the fiscal limits for filing the appeals in direct and indirect tax matters in the Union Budget 2024-25, the Apex court dismissed 573 direct tax cases in which there is less than Rs 5 crore tax effect, the Ministry of Finance mentioned.
As per the finance ministry, the measures are anticipated to reduce the tax litigation load and expedite the resolution of tax disputes aligned with the government’s measures to promote ‘Ease of Living’ and ‘Ease of Doing Business’.
Central Board of Direct Taxes (CBDT) and CBIC furnish significant orders to improve the fiscal limit for filing appeals in their respective domains. Consequently, it anticipates that the matters due before distinct appellate meetings would decrease and lessen the tax litigation, the Ministry cited.
While showing the Budget in July FM Nirmala Sitharaman asked to surge the fiscal limits for appeal filing pertinent to the direct taxes, excise, and service tax in the tax tribunals, High courts, and Apex courts to Rs 60 lakh, Rs 2 crore and Rs 5 crore respectively. The limit to file the plea was set in 2019 by the government at the Income Tax Appellate Tribunal (ITAT) at Rs 50 crore, for high courts at Rs 1 crore, and for Supreme Court at Rs 2 crore.
From distinct judicial forums, nearly 4300 cases are estimated to be withdrawn over time, per the ministry. The total of 4,300 cases would consist of 700 cases in ITAT, 2,800 cases in high courts, and 800 cases in the Supreme Court.
Filing appeal limit was identically raised for indirect taxes, with the threshold for CESTAT (Customs Excise and Service Tax Appellate Tribunal) raised to Rs 60 lakh from Rs 50 lakh, for high courts raised to Rs 2 crore from Rs 1 crore and to Rs 5 crore from Rs 2 crore for the Supreme Court.
Approximately 1,050 cases related to central excise and service tax are expected to be dismissed from different judicial platforms, comprising 250 appeals from the Supreme Court, 550 from high courts, and 250 from CESTAT.
