Tax department to dispose of pending appeals over Rs 50 crores in FY24

It must be noted that the government has set a budget target of Rs 18.23 lakh crore from direct taxes in financial year 2023-24.

Image used for representational purpose only. (Express IIlustration) 

NEW DELHI: The income tax department has set a target of disposing of 100% of appeals pending as of April 1, 2023, that involve demand of Rs 50 crore and above during the current financial year. In its annual action plan for the financial year 2023-24, the department has instructed its officers to dispose of on priority the cases which have been set aside and restored to the Commissioners of Income-tax (Appeal) by courts or IT Appellate Tribunal (ITAT).

The number of appeals related to direct taxes pending was 5.16 lakh at the end of March 31, 2023, which is 20,000 more than 4.96 lakh appeals a year ago. Pendency in respect of appeals filed prior to April  1, 2020, was 2.82 lakh as of March 31, 2023.

The department has also instructed its officers to dispose of all appeals for which Form 5 has been issued under the Vivad Se Vishwas Scheme within a week of the issue of Form 5. Form 5 is issued after the order of full and final settlement of tax arrears under the Vivad se Vishwas scheme.

The tax department has also set a target of 40% reduction in arrear demand as of April 1, 2023. Arrear demand is any demand raised by the tax department against a taxpayer, which has not been paid by him/her.

The arrear demand, including demand not fallen due as of March 31, 2023, has increased from Rs 22.98 lakh crore as of April 1, 2022, to Rs 24.51 lakh crore as on 1 April 2023.

It must be noted that the government has set a budget target of Rs 18.23 lakh crore from direct taxes in the financial year 2023-24.  Of that target, the government expects Rs 9.22 lakh crore from corporate taxes, Rs 8.72 lakh crore from income taxes and Rs 27,625 crore from other taxes (STT).

The number of pending appeals go up in FY23

The number of appeals related to direct taxes pending was 5.16 lakh at the end of March 31, 2023, which is 20,000 more than 4.96 lakh appeals a year ago. The department has also instructed its officers to dispose of all appeals for which Form 5 has been issued under the Vivad Se Vishwas Scheme within a week of the issue of Form 5