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After revision of monetary limits for tax appeals, SC strikes off 573 direct tax cases

The Finance Ministry said the measures are expected to “significantly reduce the burden of tax litigation and expedite the resolution of tax disputes” in alignment with the government’s efforts to promote ‘Ease of Living’ and ‘Ease of Doing Business’.

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Around 4,300 cases are estimated to be withdrawn from various judicial forums over the course of time, the Ministry said. The 4,300 cases would include 700 cases in ITAT, 2,800 cases in high courts and 800 cases in the Supreme Court.

After the revision in monetary limits for filing appeals in direct and indirect tax cases in the Union Budget 2024-25, the Supreme Court on Tuesday struck off 573 direct tax cases where the tax effect is less than Rs 5 crore, the Ministry of Finance said in a statement on Tuesday.

The Finance Ministry said the measures are expected to “significantly reduce the burden of tax litigation and expedite the resolution of tax disputes” in alignment with the government’s efforts to promote ‘Ease of Living’ and ‘Ease of Doing Business’.

“The CBDT and CBIC had issued necessary orders to enhance the monetary limit for filing appeals in their respective domains. As a result, it is expected that the cases pending before various appellate fora will come down and reduce tax litigation,” the Ministry said.

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Union Finance Minister Nirmala Sitharaman, while presenting the Budget in July, had proposed to increase monetary limits for filing appeals related to direct taxes, excise and service tax in the tax tribunals, high courts and Supreme Court to Rs 60 lakh, Rs 2 crore and Rs 5 crore respectively. In 2019, the government had set the threshold for filing appeals at Income Tax Appellate Tribunal (ITAT) at Rs 50 crore, for high courts at Rs 1 crore and for Supreme Court at Rs 2 crore.

The limit for filing appeals was also similarly raised for indirect taxes, with the limit for CESTAT (Customs Excise and Service Tax Appellate Tribunal) increased 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. Around 1,050 cases of central excise and service tax are estimated to be withdrawn from various judicial forums including 250 appeals from the Supreme Court, 550 appeals from high courts and 250 appeals from CESTAT.

Aanchal Magazine

Aanchal Magazine is Senior Assistant Editor with The Indian Express and reports on the macro economy and fiscal policy, with a special focus on economic science, labour trends, taxation and revenue metrics. With over 13 years of newsroom experience, she has also reported in detail on macroeconomic data such as trends and policy actions related to inflation, GDP growth and fiscal arithmetic. Interested in the history of her homeland, Kashmir, she likes to read about its culture and tradition in her spare time, along with trying to map the journeys of displacement from there. ... Read More

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