• Income-tax (Domestic-business)

The Hon’ble Supreme Court disposed of 573 Income-tax Cases

  Published In :  EvoBreyta   Download  

 Author :  Navneet Singal

The Hon’ble Supreme Court disposed of 573 Income-tax Cases post revision in the threshold limit of appeal filing

The Hon'ble Supreme Court today disposed of 573 direct tax cases where the tax effect is less than ₹5 crore, because of the revised monetary limit of filing of appeals. This significant milestone aligns with the government's efforts to reduce tax litigation and promote Ease of Doing Business.

Direct Tax

As per the announcements in the Union Budget 2024-25, the monetary thresholds for filing tax dispute appeals by the department were enhanced as follows:

•        For Income Tax Appellate Tribunal (ITAT): Increased from ₹50 lakh to ₹60 lakh.
•        For High Courts: Increased from ₹1 crore to ₹2 crore.
•        For Supreme Court: Increased from ₹2 crore to ₹5 crore.

As a result of these revised limits, it is estimated that around 4,300 cases will be withdrawn from various judicial forums over the course of time:

•        ITAT: 700 cases
•        High Courts: 2,800 cases
•        Supreme Court: 800 cases

Indirect Taxes

Similarly, the limit for filing appeals for the specified legacy Central Excise & Service Tax cases was increased:

•        For CESTAT (Customs Excise and Service Tax Appellate Tribunal), the limit was increased to ₹60 lakh from ₹50 lakh
•        For the High Court, the limit was increased to ₹2 crore from ₹1 crore.
•        For the Supreme Court, the limit was increased to ₹5 crore from ₹2 crore.  

As a result of these revised limits, it is estimated that around 1,050 cases pertaining to specified legacy Central Excise & Service Tax cases are estimated to be withdrawn from various judicial forums:

•        Supreme Court: 250 appeals
•        High Courts: 550 appeals
•        CESTAT: 250 appeals