Zania-Editor
Following the Budget announcement, the CBDT and CBIC have issued orders to increase the monetary limits for filing appeals in their areas. The Supreme Court has recently closed 573 direct tax cases where the tax amount involved is less than Rs 5 crore. This decision is part of the government’s efforts to lower tax litigation and improve the Ease of Doing Business.
In the Union Budget for 2024-25, the government raised the monetary limits for appeals related to Direct Taxes, Excise, and Service Tax in various courts. The new limits are Rs 60 lakh for the Income Tax Appellate Tribunal (ITAT), Rs 2 crore for High Courts, and Rs 5 crore for the Supreme Court. Following this, the CBDT and CBIC implemented the new limits.
As a result, the Finance Ministry expects that the number of pending cases in different appellate forums will decrease, helping to reduce tax litigation. The ministry estimates that around 4,300 cases may be withdrawn from various courts over time due to these changes. Additionally, the government is adding more officers to handle income tax appeals, especially for significant tax cases.
These initiatives show the government’s commitment to improving the ‘Ease of Living’ and ‘Ease of Doing Business’ in the country by cutting down on pending litigation.
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