Government Withdraws Thousands of Tax Appeals After Monetary Limit Hike

In a significant move, the Indian government has withdrawn 6,599 tax appeals across various judicial levels following an increase in the monetary threshold for filing such cases. This decision impacts the Income Tax, Customs, and Central Excise departments and aims to streamline legal processes and reduce litigation.

The Indian tax departments have decisively withdrawn 6,599 appeals from tribunals, High Courts, and the Supreme Court due to recent adjustments in the monetary limits for filing such cases, according to parliamentary reports.

Minister of State for Finance Pankaj Chaudhary disclosed in Lok Sabha that the Central Board of Direct Taxes (CBDT) has raised the monetary thresholds for appeals by the Income Tax Department to Rs 60 lakh for the Income Tax Appellate Tribunal, Rs 2 crore for High Courts, and Rs 5 crore for the Supreme Court.

Parallelly, the Customs and Central Excise & Service Tax departments have also retracted 477 and 1,171 appeals, respectively, post the revision, setting the new monetary limits for Customs at Rs 50 lakh for CESTAT, Rs 1 crore for High Courts, and Rs 2 crore for the Supreme Court.

(With inputs from agencies.)