MP Arora demands to address almost 5 Lacs pending cases before CIT Appeals in RS

Ludhiana, August 5, 2024: MP (Rajya Sabha) from Ludhiana Sanjeev Arora while speaking in the ongoing session of Rajya Sabha during zero hour on Monday urged upon the government to address huge pendency of cases before Commissioner of Income Tax (CIT) Appeals across the country. 

Arora expressed his deep concern regarding the significant backlog of appeals pending before Commissioner of Income Tax (CIT) Appeals in India. 

He said the current situation is worrisome, as of April 2024, a staggering number of five lakh appeals remain unresolved with CIT and majority of these were lodged within the recent implemented faceless appellate system. 

Arora pointed out that this immense backlog not only contradicts the commitment to timely decisions outlined in the Taxpayers Charter, but also raises serious questions about equity and fairness within the tax system. 

He mentioned that in the last financial year, only 61,311 cases (around 12%) were resolved. He added, “And, I am sure equal number must have been filed also.” 

To address the critical situation, Arora urged the Minister concerned to consider certain measures in the upcoming time.  

Arora suggested to enact appropriate legislation to enforce stricter time limits on CIT Appeals for appeal disposals. 

He said the current advisory limit of one year is insufficient, adding that it is an advisory limit, but it is not being adhered to. 

He also suggested to introduce measures to provide relief to taxpayers, waiving the requirement of 20% prepayment before filing an appeal. 

Arora also suggested to refunding excess tax recovered during prolonged delays, granting automatic stay on penalties and prosecution for appeals exceeding the specific time frame. 

He also suggested for establishing a system of accountability to address the root causes of delayed within the system. 

He said the current pendency crisis discourages taxpayer compliance and undermines the integrity of the tax system. 

Arora hoped that taking swift action through these proposed measures will ensure a more efficient, fair and transparent appellate system.