CBDT introduces New Timelines for Filing Appeals in order to reduce delays

CBDT has direct new timeline for filing appeal in tax case to ensure a zero-delay regime in such matter to ensure officials do not delay follow-up on SC ruling.

New Timelines for Filing Appeals to reduce delays

Reetu | Dec 26, 2022 |

CBDT introduces New Timelines for Filing Appeals in order to reduce delays

CBDT introduces New Timelines for Filing Appeals in order to reduce delays

The Central Board of Direct Taxes (CBDT) has prescribed new timelines for filing appeals in tax cases to ensure a zero-delay regime in such matters, in order to ensure tax officials do not delay follow-ups on Supreme Court rulings.

CBDT has listed various actions that must be completed within 85 days of the date of the order in recent instructions outlining a standard operating procedure on filing appeals and special leave petitions (SLPs). The Special Leave Petition against the High Court’s decision must be filed in the Supreme Court within 90 days of the order’s issuance.

“CBDT has periodically issued a number of instructions and directives emphasising the importance of timely filing of appeals and SLPs in the Supreme Court as well as proper litigation conduct. However, a number of SLPs are being submitted with excessive delay, “according to the CBDT.

A suitable institutional mechanism for the prompt publication of court orders will be made sure by each Principal Commissioner of Income Tax who has jurisdiction over a station with a High Court Bench. In addition, they will establish a High Court Cell that will keep track of all orders and rulings on a daily basis and coordinate with Standing Counsels on the various tax-related cases that are brought before the court.

After careful consideration by the Directorate of Legal and Research, proposals for SLP will be sent by the Principal Commissioner of Income Tax and must be sent within 20 days of the judgement.

CBDT has emphasised the importance of the quality of the proposal sent by the Principal Commissioner of Income Tax or Commissioner of Income Tax for the efficient and effective management of litigation in the Department, adding that appeals to the High Court and the Supreme Court can only be filed on “Substantial Questions of Law.” However, it has been noted that many SLP proposals only include “questions of fact,” it added.

According to experts, there has been a general trend of the income tax department filing SLPs with excessive delays.

“The total timeline for the various phases has been shortened to 85 days. Additionally, a revised proforma has been introduced for submitting the proposal to file the SLP, listing additional information such as appeals involved against the SLP filed, the specific issue-by-specific issue tax effects included in the SLP proposal in addition to the aggregate tax effects on disputed issues, reasons recorded, and PCIT approval in case of reassessment, etc. With the aforementioned guidelines established by CBDT, the process would unquestionably be streamlined and SLPs would be filed on time.” said Sanjoli Maheshwarri, Director, Nangia Andersen India.

Following the Supreme Court’s directive to adopt Information and Communication Technology (ICT) for seamless integration of all phases, the CBDT established a Legal Information Management Briefing System Committee (LIMBS) and a High Powered Committee. “The High Powered Committee has advised the Board to work towards a “Zero Delay Regime” in the filing of appeals and SLPs,” the CBDT stated.

The income tax department has faced significant challenges due to litigation and the pending status of tax cases. Nearly Rs.10.6 trillion of funds is locked up in tax cases for the department by March 31, 2021, with several cases pending for more than ten years.

 

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