Supreme Court Disposes 573 Tax Cases Under Rs5 Crore Amid Revised Appeal Limits

Following revised monetary limits, the Supreme Court has dismissed 573 direct tax cases valuing under Rs5 crore. This move, in line with government's efforts to reduce tax litigation, is part of broader measures announced in the Union Budget 2024-25 aimed at promoting Ease of Doing Business.

The Supreme Court has resolved 573 direct tax cases involving amounts under Rs5 crore, the Ministry of Finance announced on Tuesday. This action follows the revised monetary limits for filing appeals, part of the government's broader strategy to reduce tax litigation and enhance Ease of Doing Business.

The Union Budget for 2024-25 introduced higher monetary thresholds for appeals concerning Direct Taxes, Excise, and Service Tax in various judicial bodies. The limits now stand at Rs60 lakh for Tax Tribunals, Rs2 crore for High Courts, and Rs5 crore for the Supreme Court. The Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) have issued the necessary directives to implement these changes.

The Finance Ministry estimates a reduction in pending cases across appellate forums, anticipating that about 4,300 cases will ultimately be withdrawn. Additionally, more officers are being appointed to expedite the hearing and resolution of income tax appeals, particularly those involving significant tax amounts.

These initiatives underline the government's dedication to improving the 'Ease of Living' and 'Ease of Doing Business' by minimizing litigation backlog, the ministry emphasized.

(With inputs from agencies.)