Sitharaman Calls for Strategic Overhaul in Tax Litigation to Reduce Disputes

Union Finance Minister Nirmala Sitharaman has directed the Income Tax Department to analyze lost court cases from the past decade. The goal is to reduce litigation disputes and improve legal representation. This includes preparing a list of expert tax law advocates and reviewing pending litigation times.

In a bid to streamline tax-related litigations, Union Finance Minister Nirmala Sitharaman has instructed the Income Tax Department to scrutinize court cases it lost over the past decade, sources confirmed Monday. The objective is to derive lessons and minimize future litigation, a senior official said.

During a recent high-level meeting with the Central Board of Direct Taxes (CBDT) and senior tax officers, Minister Sitharaman emphasized the importance of learning from previous losses. She also urged the department to compile a list of expert tax law advocates who can represent the department effectively in judicial forums, including the National Company Law Tribunal (NCLT).

Additionally, the minister stressed the need to audit the timelines and outcomes of cases pending in both high courts and the Supreme Court. This comes as part of the Modi government's ongoing efforts to reduce the backlog of legal disputes within the I-T department, including a recent hike in the threshold for filing appeals.

(With inputs from agencies.)