Lok Sabha Question No. 5731 (UNSTARRED), answered on 2017-04-07
Subject: Tax Revenue Locked up due to Litigation
Ministry: FINANCE
Asked by: K. KAMARAAJ

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO.5731

## TO BE ANSWERED ON FRIDAY, THE 7 TH  APRIL, 2017 CHAITRA 17, 1939(SAKA)

## TAX REVENUE LOCKED UP DUE TO LITIGATION

## 5731.  DR. K. KAMARAJ

Will the Minister of FINANCE be pleased to state:

- (a) whether a large number of direct taxes is locked up in litigation and if so, the details thereof;
- (b) the number of income tax cases filed including claim amount in various courts during the last three years and the current year;
- (c) the amount spent for litigation charges including advocate fee during the said period;
- (d) whether  the  Government  proposes  to  avail  the  services  of  an  alternate  dispute mechanism to settle such cases out of court; and
- (e) if so, the details thereof and action taken thereon?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

- (a) Yes, Madam. The following table presents the details of the direct tax cases pending before various judicial fora.

| Appellate Forum   | Number of appeals pending   | As on date   |
|-------------------|-----------------------------|--------------|
| CIT(Appeals)      | 2,83,843                    | 28.02.2017   |
| ITAT              | 88,730                      | 31.12.2016   |
| High Court        | 41,960                      | 31.12.2016   |
| Supreme Court     | 5,272                       | 30.09.2016   |

(b) The details of the pendency of cases including the amount locked up (in Rs. Crore) in dispute before the various judicial fora  are as follows.

| Appellate Forum   | 2013-14   | 2013-14   | 2014-15   | 2014-15   | 2015-16   | 2015-16   | Current year   |
|-------------------|-----------|-----------|-----------|-----------|-----------|-----------|----------------|
| Appellate Forum   | No.       | Amnt.     | No.       | Amnt.     | No.       | Amnt.     | Amnt.          |
| CIT (A)           | 2,15,174  | 2,87,444  | 2,32,126  | 3,83,797  | 2,58,898  | 5,16,250  | 6,71,069       |
| ITAT              | 35,266    | 1,43,254  | 37,506    | 1,45,534  | 32,834    | 1,35,983  | 1,40,323       |
| HC                | 35,696    | 33,128    | 34,281    | 37,683    | 32,138    | 1,61,417  | 1,66,284       |
| SC                | 5,960     | 3,201     | 5,661     | 4,654     | 5,399     | 7,091     | 7,530          |

Source: Research & Statistics Wing, O/o. DGIT (Logistics)

The amounts locked up in dispute mentioned in the table above for current year before CIT (A) is as on 28.02.2017 and for ITAT, HC and SC the data is as on 30.09.2016.

## (c) No such details on the amount spent for litigation is maintained.

(d) & (e) The  Central  Government  had  initiated  the  Direct  Tax  Dispute  Resolution Scheme,  2016  to  resolve  the  disputes  pending  before  the  Commissioner  of  Income  Tax (Appeals) and to reduce the tax payer grievance due to the long pending litigation. A total of 10,423 applications have been received under the Scheme amounting to a tax arrear of Rs. 1,235 Crore. Apart from this Scheme, there is no proposal at present to avail the services of alternate dispute mechanism to settle such cases out of court for the other judicial fora.

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