The Supreme Court of India on 24th September listed 291 cases for hearing where the disputed tax effect is below ₹5 crore.
By focusing on such cases, the court aims to reduce the backlog of appeals and ensure that matters involving smaller tax amounts are resolved without further delay.
On September 17, 2024, the Central Board of Direct Taxes ( CBDT ) issued Circular No. 09/2024, which revised the monetary limits for filing income tax appeals before the Income Tax Appellate Tribunal ( ITAT ), High Courts ( HCs ), and the Supreme Court ( SC ). The pending appeals below the new threshold will be withdrawn by the department. The updated thresholds raise the limits to Rs 60 lakh for ITAT, Rs 2 crore for HCs, and Rs 5 crore for SC appeals or Special Leave Petitions ( SLPs ).
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This amendment supersedes the previous limits set under Circular No. 5/2024 dated March 15, 2024, which were Rs 50 lakh for ITAT, Rs 1 crore for HCs, and Rs 2 crore for SC appeals. The increase in limits aims to mitigate the number of appeals filed over relatively minor tax disputes, thereby reducing the overall litigation burden.
The listing of these cases is part of a broader effort by the judiciary to improve efficiency in handling tax-related disputes. With thousands of tax appeals pending across various courts, this initiative is seen as a step towards reducing litigation time and helping the government recover or refund smaller amounts more promptly.
Read also: Low Tax Effect As Per CBDT Circular: Supreme Court Dismisses SLP
The hearings are expected to set a precedent for resolving similar disputes swiftly, easing the burden on the tax administration and providing clarity to taxpayers involved in prolonged legal battles.
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