Lok Sabha Question No. 4939 (UNSTARRED), answered on 2017-03-31
Subject: Pending Tax Cases
Ministry: FINANCE
Asked by: RAM TAHAL CHOUDHARY, KONDA VISHWESHWAR REDDY, RAMA DEVI

## Government of India Ministry of Finance Department of Revenue

## LOK SABHA

## UNSTARRED QUESTION NO.  4939

TO BE ANSWERED ON FRIDAY, MARCH 31, 2017 CHAITRA 10, 1939 (SAKA)

## PENDING TAX CASES

4939: SHRI RAM TAHAL CHOUDHARY: SHRI KONDA VISHWESHWAR REDDY: SHRIMATI RAMA DEVI:

Will the Minister of Finance be pleased to state:

- (a) the details of total tax related Government cases pending before different High Courts and Supreme Court;
- (b) Whether the Government has evolved any criteria/guidelines regarding filing of appeals in higher courts and if so, the details thereof;
- (c) the  number  of  pending  income  tax  cases  before  Commissioner  of  Income  Tax  and Income Tax Appellate Tribunal;
- (d) whether the Government has devised any mechanism for speedy disposal of appeals by identifying cases involving huge amounts; and
- (e) if so, the details thereof along with the success achieved in this regard?

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

(a):    The  details  of  total  tax  related  government cases pending before Supreme Court and High Court are as under:

| Appellate Forum   | No. of pending appeals   | No. of pending appeals   | No. of pending appeals       |
|-------------------|--------------------------|--------------------------|------------------------------|
| Appellate Forum   | Direct Tax               | As on Date               | Indirect Tax (as on 31.1.17) |
| High Court        | 41960                    | 31.12.16                 | 13893                        |
| Supreme Court     | 5272                     | 30.9.16                  | 2904                         |

## (b):  Direct Tax

Central  Board  of  Direct  Tax  has  fixed  the  monetary  limits  of  filing  of  appeals  before ITAT, High Courts and Supreme Court are as follows:

|   Sl. No. | Forum         |   Amount in Lakhs |
|-----------|---------------|-------------------|
|         1 | ITAT          |                10 |
|         2 | High Court    |                20 |
|         3 | Supreme Court |                25 |

Further appeal is required to be filed in these appellate forums 'on merits' even if the tax effect exceeds the monetary limits as stated above.

## Indirect Tax

Central Board of Excise & Customs has from time to time issued instructions to the field formations for exercising discretion in filing the Appeals to High Court and Supreme Court.

CBEC  has  instructed  the  field  formation  not  to  file  appeals  in  cases  where  the  issues have  already  been  settled  by  the  decision  of  Supreme  Court  and  also  in  cases  involving amount below the prescribed threshold limits that is as follows:

|   S. No. | Forum         |   Amount in Lakhs |
|----------|---------------|-------------------|
|        1 | High Court    |                20 |
|        2 | Supreme Court |                25 |

(c): The number of cases pending before CIT (Appeals) and ITAT are as under:

| Appellate Forum   |   No. of pending appeals | As on date   |
|-------------------|--------------------------|--------------|
| CIT(Appeals)      |                   280547 | 31.01.2017   |
| ITAT              |                    88370 | 31.12.2016   |

(d): Yes, Madam.

## (e):  Direct Tax

Based on the analysis of all the pending appeals before the CIT(Appeals) it was found that  a  total  disputed  demand  of  about  Rs.  3.5  Lakh  Crore  (Rupees  three-and-half  Lakh Crore) was locked up in just 620 appeals. These appeals have a disputed demand in excess of  Rs.  100  Crore  in  each  case.  These  620  appeals  were  identified  region-wise  and  their disposal were prioritised. Out of these 620 cases, 188 cases have been disposed till date in which an amount of Rs.1.14 lakh crore has been unlocked.

## Indirect Tax

Field formations have been instructed from time to time to identify the case having huge revenue implications  and make an  application for early  hearing  of  these  cases.  However, both Supreme Court and High Court have shown reluctance in taking the case for early hearing on revenue considerations. *****