Speed up tax settlement, panel tells ministry

Concerned over pendency of legal cases that had locked up close to Rs 75,000 crore in revenue, a parliamentary committee today asked the finance ministry to take up the matter with the law ministry so as to avoid inordinate delays in disposal of cases.

"The pendency position of appeals both under direct tax as well as indirect taxes are a serious cause of concern... Inordinate delays in disposal of cases may indirectly encourage the assessees to go in for appeal even in a case of no hope," the Standing Committee on Finance said in its report tabled in Parliament today.

A whopping Rs 55,138 crore is locked up at various levels under direct taxes while it is Rs 19,473 crore for indirect taxes, it said. More than half of the amount is locked up in various tribunals, it said.

"The main reason for delay in disposal of cases by the Income Tax tribunal is that the tribunal gives stays beyond the mandatory 180 days," it said. The finance ministry is not in a position to justify the pendency of such huge number of cases.

The finance ministry has taken the initiative of requesting the tribunals, high courts and the Supreme Court to resolve high demand appeals on a priority basis.