Steps for Reducing Tax Litigations (Download PDF)

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GoI has decided to increase threshold monetary limits for filing Departmental Appeals at various levels, be it Appellate Tribunals, High Courts & Supreme Court in the following manner.

Table contain shows the Appeal Fora and Present limit for filing appeal

Table contain shows the Appeal Fora and Present limit for filing appeal

Sl. No.

Appeal Fora

Present limit for filing appeal (In Rs. )

Enhanced limit (In Rs. )

1

ITAT/CESTAT

10 lakhs

20 lakhs

2

High Courts

20 lakhs

50 lakhs

3

Supreme Court

25 lakhs

1 Crore

Image of Steps for Reducing Tax Litigations

Image of Steps for Reducing Tax Litigations

Image of Steps for Reducing Tax Litigations

  • This decision will reduce long pending grievances of taxpayers & minimise litigations pertaining to tax matters facilitating Ease of Doing Business.

  • This is major step in direction of litigation management of both direct & indirect taxes as it will effectively reduce minor litigations & help Department to focus on high value litigations.

Central Board of Direct Taxes (CBDT)

  • In case of CBDT, out of total cases filed by Department in ITAT, 34 % of cases will be withdrawn.

  • In case of High Courts, 48 % of cases will be withdrawn & in case of Supreme Court 54 % of cases will be withdrawn.

  • Total % of reduction of litigation from Department’s side will get reduced by 41%.

  • This will not apply in such cases where substantial point of law is involved.

Central Board of Indirect Taxes & Customs

  • In case of CBIC, out of total cases filed by Department in CESTAT, 16 % of cases will be withdrawn.

  • In case of High Courts, 22 % of cases will be withdrawn & in case of Supreme Court 21 % of cases will be withdrawn.

  • Total % of reduction of litigation from Department’s side will get reduced by 18%.

  • This will not apply in such cases where substantial point of law is involved.

  • This step will reduce future litigation flow from Department side.

About Central Board of Direct Taxes

  • Statutory Authority Functioning under Central Board of Revenue Act, 1963.

  • Function as Division of Ministry dealing w/matters relating to levy & collection of direct taxes.

  • CBDT consists of Chairman & 6 Members: -

    • Chairman

    • Member (Income-tax)

    • Member (Legislation & Computerization)

    • Member (Personnel & Vigilance)

    • Member (Investigation)

    • Member (Revenue)

    • Member (Audit & Judicial)

About Central Board of Indirect Taxes & Customs

  • CBIC is part of Department of Revenue under Ministry of Finance, GoI.

  • It deals w/tasks of formulation of policy concerning levy & collection of Customs & Central Excise duties & Service Tax, prevention of smuggling & administration of matters relating to Customs, Central Excise, Service Tax & Narcotics to extent under CBEC’s purview.

  • Board is administrative authority for its subordinate organizations, including Custom Houses, Central Excise & Service Tax Commissionerates & Central Revenues Control Laboratory.

  • Vision - To be modern & professional indirect tax administration, safeguarding our economic frontiers adopting stakeholders centric approach based on trust & voluntary compliance.

  • Mission - To provide efficient system by:

    • Formulating progressive tax policies & processes to enable smooth economic activities.

    • Realising revenue in fair, equitable, transparent & efficient manner.

    • Managing cross border movements of goods & people w/view to ensuring safety & security of citizens & economy of country.

    • Facilitating capacity enhancement of all stakeholders to improve compliance.

    • Adopting international best practices & promoting bilateral & multilateral international cooperation.

    • Investing in human capital to achieve high level of integrity, competency & committment.

    • Administering goods & services tax across India in harmony w/state tax administrators.

    • Innovative use of technology & techniques for max. facilitation & minimal intervention.

    • Combating tax evasion & commercial frauds w/interventions based on risk assessment using analytics & predictive technology.

- Published/Last Modified on: October 2, 2018

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