The government in the Union Budget 2024-25 enhanced monetary limits for filing appeals related to direct taxes in the tax tribunal, high courts and the Supreme Court to ₹60 lakh, ₹2 crore, and ₹5 crore respectively. According to reports from Business Standard, Finance Minister Nirmala Sitharaman provided details of these changes in a written reply to the Lok Sabha on Monday.
At the Income Tax Appellate Tribunal (ITAT) level, 443 cases were withdrawn and 11,390 appeals were not filed after the increase in monetary threshold. As reported by Business Standard, the total estimated reduction in disputed tax demand at ITAT was ₹3,662.82 crore. This represents the largest impact at the tribunal level due to the enhanced appeal limits.
At the high court level, 4,791 cases were withdrawn and 5,565 appeals were not filed. According to the government data reported by Business Standard, this resulted in an estimated ₹9,218.71 crore reduction in disputed tax demand. The high court level showed significant impact with substantial case withdrawals and non-filings.
At the Supreme Court level, 744 cases were withdrawn and appeals not filed in 534 cases. As reported by Business Standard, this resulted in an estimated ₹3,807.15 crore reduction in disputed tax demand. The Supreme Court level showed the smallest impact compared to other judicial forums.
Taken together, the total estimated reduction in disputed tax demand at ITAT, HC, and SC stood at ₹16,690 crore. According to the government data reported by Business Standard, this substantial reduction demonstrates the effectiveness of the enhanced monetary limits in resolving tax disputes. The changes were implemented from September 17, 2024.
