Efficient Tax Appeal Disposal System - A Real Time and Practical Approach – Delhi High Court

In a landmark decision, the Delhi High Court has disposed of a long-standing Public Interest Litigation (PIL) filed by the All India Federation of Tax Practitioners, citing substantial measures taken by the Central Board of Direct Taxes (CBDT) to expedite the disposal of income tax appeals. The High Court acknowledged the CBDT's “real time and practical approach” to managing the backlog of appeals, marking a significant move towards improving the efficiency of tax litigation management.

The PIL, which sought directives for the timely disposal of appeals by Commissioners (Appeals) under the Income Tax Act and an increase in the number of such commissioners, has been under the court's consideration since 2013. Addressing the petition's concerns, the court noted the additional affidavit from the CBDT, which outlined a comprehensive roadmap for handling pending appeals. The court was satisfied that the CBDT's plan addressed the petitioner's prayers suitably.

Justice Tushar Rao Gedela, in his judgment, emphasized the importance of the judiciary's role in ensuring that administrative bodies implement policies efficiently. He remarked, "We are satisfied that the prayers as sought by the petitioner have been suitably addressed by the CBDT."

The bench, comprising the Chief Justice and Justice Gedela, observed that the introduction of 'Faceless Appeals' and the proposal to appoint additional Commissioners (Appeals) demonstrated the CBDT's commitment to reducing pendency. The court also acknowledged the Union of India's potential role in filling up vacant posts and possibly increasing the sanctioned strength to meet the objectives of the CBDT's yearly Central Action Plan.

The advocates representing the petitioner, led by Senior Advocate Mr. Prem Lata Bansal, along with Mr. Shivang Bansal and Mr. Anunav Kumar, argued the case, highlighting the delays and inefficiencies that have plagued taxpayers. Responding for the CBDT, Mr. Prashant Meharchandani, Senior Standing Counsel, presented the steps being taken to resolve the issue.

As the court disposed of the PIL, the judiciary has set a precedent, ensuring that the tax appeal process becomes more streamlined and taxpayer-friendly, thus, enhancing the trust in the country's tax administration and legal systems.

Date of Decision: 06.11.2023

ALL INDIA FEDERATION OF TAX PRACTIONERS  VS UOI AND ANR