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( 12 Jul 2018)
Govt takes slew of measures for reducing tax litigations

In order to reduce the long pending grievances of taxpayers and to minimise litigations pertaining to tax matters and to facilitate the Ease of Doing Business, Government of India has decided to increase the threshold monetary limits for filing Departmental Appeals at various levels, be it Appellate Tribunals, High Courts and the Supreme Court.

“This is a major step in the direction of litigation management of both direct and indirect taxes as it will effectively reduce minor litigations and help the Department to focus on high value litigations,” Ministry of Finance said in a press release.

In case of CBDT, out of total cases filed by the Department in ITAT, 34 per cent of cases will be withdrawn. In case of High Courts, 48 per cent of cases will be withdrawn and in case of Supreme Court 54 per cent of cases will be withdrawn. The total percentage of reduction of litigation from Department’s side will get reduced by 41 per cent. However, this will not apply in such cases where substantial point of law is involved.

Similarly, in case of CBIC, out of total cases filed by the Department in CESTAT, 16 per cent of cases will be withdrawn. In case of High Courts, 22 per cent of cases will be withdrawn and in case of Supreme Court 21 per cent of cases will be withdrawn. The total percentage of reduction of litigation from Department’s side will get reduced by 18 per cent. However, this will not apply in such cases where substantial point of law is involved.