FM Sitharaman Orders Fast-Track Resolution Of 5.7 Lakh Pending Tax Appeals

(MENAFN- KNN India) New Delhi, Jun 24 (KNN) Finance Minister Nirmala Sitharaman on Monday instructed the Income Tax department to expedite the resolution of more than 570,000 outstanding tax appeals while simultaneously improving taxpayer service delivery mechanisms.

The directive came during a meeting with Principal Chief Commissioners of Income Tax, where the minister stressed the importance of reducing litigation and rebuilding confidence in the tax administration framework.

Sitharaman called for the timely resolution of disputed tax demands currently pending before faceless appellate authorities.

She specifically ordered the withdrawal of all departmental appeals that fall below revised monetary thresholds within a three-month timeframe.

This initiative forms part of broader reforms aimed at streamlining the tax dispute resolution process.

The monetary limits for departmental appeals were revised upward as announced in the Union Budget 2024-25.

The threshold for appeals to the Income Tax Appellate Tribunal was increased from Rs 50 lakh to Rs 60 lakh, while the limit for High Court appeals rose from Rs 1 crore to Rs 2 crore. For Supreme Court appeals, the threshold was elevated from Rs 2 crore to Rs 5 crore.

Central Board of Direct Taxes officials reported that these enhanced thresholds have already yielded results. In 2024, 4,605 cases were withdrawn following the implementation of the new limits, while an additional 3,120 cases were not filed due to the raised thresholds.

The department has set an ambitious target to dispose of more than 225,000 appeals in the fiscal year 2025-26, involving tax demands exceeding Rs 10 trillion.

The Finance Minister also reviewed the current status of taxpayer services, including grievance redressal mechanisms and refund processing.

Official data revealed that 131,844 grievances out of 160,229 received through CPGRAMS and e-Nivaran platforms had been resolved as of June 17, achieving a disposal rate of 82.28 percent.

Regarding refund disbursements, the department issued Rs 23,376 crore in refunds based on Orders Giving Effect and Rs 10,496 crore through rectification processes in the current fiscal year 2025-26.

This represents a significant increase of 58.04 percent compared to the corresponding period in the previous year, demonstrating improved efficiency in refund processing.

(KNN Bureau)

MENAFN24062025000155011030ID1109718107