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Withdrawal of tax appeals to affect fraction of disputed amount: Goyal

IANS  |  New Delhi 

The government's decision to reduce litigation by withdrawing 41 per cent of direct dispute cases and 18 per cent of indirect dispute cases will affect only a fraction of the total value of the disputed amount, said on Thursday.

He said that as per estimates, there were disputes worth Rs 7.6 lakh crore pending in various appeal tribunals, high courts and the

"Out of this, 66 per cent of cases amount to only 1.8 per cent value of the total litigation value of Rs 7.6 lakh crore," Goyal told reporters here.

"Often it has been found that the cost of litigation is greater than the recovery amount... So to minimise litigation, the government has decided it will not file any appeals in appellate tribunals, High Courts and the in cases involving an amount less than Rs 20 lakh, Rs 50 lakh and Rs 1 crore (respectively)," the said.

The earlier limit for filing an appeal in appellate tribunals was Rs 10 lakh while it was Rs 20 lakh for High Courts and Rs 25 lakh for the

Goyal said this would lead to withdrawal of 41 per cent of existing cases related to direct taxes and 18 per cent of cases related to

In case of income tax, out of total cases filed by the department in (ITAT), 34 per cent of cases will be withdrawn. In case of High Courts, 48 per cent of cases will be withdrawn and in case of Supreme Court, 54 per cent of cases will be withdrawn.

"Withdrawing 41 per cent of pending appeals would affect only 0.82 per cent of the total litigation amount," he said.

Similarly, in case of Central Board of and (CBIC), out of total cases filed by the department in Customs, (CESTAT), 16 per cent of cases will be withdrawn.

In case of High Courts, 22 per cent of cases will be withdrawn and in case of Supreme Court, 21 per cent of cases will be withdrawn.

"And withdrawing 18 per cent of indirect tax related appeals will affect only 1.45 per cent of the litigation amount. Altogether, only Rs 6,000 crore will be forgone by substantially reducing the number of pending litigation," he said.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 12 2018. 14:30 IST
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