The Supreme Court on Tuesday expressed surprise over long-pending vacancies in the Income Tax Appellate Tribunal and sought urgent intervention from the Attorney General to expedite appointments. A bench of Chief Justice of India B R Gavai and Justice Joymalya Bagchi was hearing a writ petition filed by ex-vice president of the ITAT Parveen Kumar Bansal concerning vacancies in the tribunal's administration. Senior advocate Mukul Rohatgi submitted that several crucial positions in the ITAT, the oldest quasi-judicial body, had remained vacant for years, hampering the institution's functioning. The Chief Justice observed that "We will do something because we are also surprised that why these posts are long vacant," while the bench asked whether vacancies were limited to the principal bench or prevalent across regional benches throughout the country.
With less than a week remaining for the May 31 deadline, the Central Board of Direct Taxes (CBDT) has issued urgent appeals to reporting entities for accurate filing of Statements of Financial Transactions (SFTs). According to Business Standard, CBDT officials have specifically asked banks, cooperative banks, mutual funds, companies, property registration authorities, foreign exchange dealers and other specified institutions to ensure timely and error-free filing of SFTs for FY 2025–26. The warning comes as reporting entities face increased scrutiny over compliance standards, with officials emphasizing that poor-quality filings may create avoidable inconvenience for taxpayers and weaken the effectiveness of the data-driven tax system.
The tax department has flagged several recurring issues in SFT filings that require immediate attention. As reported by Business Standard, the most common errors include incorrect or missing PAN details, duplicate reporting of transactions, inaccurate transaction values particularly in joint accounts, and inadequate reconciliation of data before submission. Additionally, delays in filing and weak quality checks have been identified as recurring issues that need immediate resolution. A CBDT official noted that even small mistakes in SFT filing can create avoidable difficulties for taxpayers, highlighting the critical importance of accurate reporting for maintaining a transparent compliance ecosystem.
The petition reveals the extent of the administrative crisis facing the ITAT, with six deputy registrar and 27 assistant registrar posts lying vacant, according to the latest court filings. Additionally, 246 posts in the subordinate cadre also lie vacant, including positions such as senior private secretary, private secretary, superintendent, office superintendent, upper division clerk (UDC), lower division clerk (LDC), and multi-tasking staff (MTS). As reported by Business Standard, no appointments have been made to key administrative posts such as deputy registrar and assistant registrar since 2018, with the petitioner seeking directions for convening the long-pending Departmental Promotion Committee for promotions that have remained pending since 2015 and 2017. The court has directed that a copy of the petition be furnished to the office of the Attorney General to ensure expeditious filling of vacant positions.
The quality of SFT filings directly affects taxpayer experience and compliance processes through the Annual Information Statement (AIS) system. According to Business Standard reports, the AIS has significantly improved transparency and made tax compliance easier for taxpayers by enabling them to view and verify their financial information in one place through the Income-tax portal. However, the effectiveness of the AIS depends significantly on the quality of information reported, with small mistakes in SFT filing creating disproportionate issues once the data is reflected in taxpayer statements. The AIS provides a consolidated view of transactions linked to their Permanent Account Number (PAN) and helps simplify Income-tax Return filing, making accurate reporting essential for maintaining a transparent and taxpayer-friendly compliance ecosystem.
The SFT filing requirements apply to a comprehensive range of financial institutions and entities under the Income-tax Act, 1961, read with Rule 114E, which continues under the Income-tax Act, 2025. As reported by Business Standard, reporting entities such as banks, cooperative banks, mutual funds, companies, property registrars and foreign exchange dealers are required to file these statements for specified high-value transactions including interest payments, dividends, securities trades, mutual fund investments and property deals. The framework is specifically designed to strengthen transparency and improve compliance across India's financial sector, with officials noting that as India moves towards an increasingly digital and transparent tax administration framework, timely, accurate, and complete SFT reporting becomes even more important.
