Supreme Court Disposes of 573 Direct Tax Cases After Revised Monetary Limit For Filing Appeals; Nearly 4,300 Tax Disputes To Be Withdrawn

New Delhi: The Supreme Court has disposed of 573 direct tax cases where the tax effect is less than Rs 5 crore, following the revised monetary limit for filing appeals, the Ministry of Finance said in a statement on Tuesday.

This move aligns with the government's efforts to reduce tax litigation and promote the Ease of Doing Business.The Union Budget 2024-25 provided for an enhanced monetary limit for filing appeals related to Direct Taxes, Excise, and Service Tax in the Tax Tribunals, High Courts, and Supreme Court. 

The limits were increased to Rs 60 lakh, Rs 2 crore, and Rs 5 crore, respectively. Following the Budget announcement, the CBDT and CBIC issued the necessary orders to raise the monetary limit for filing appeals in their respective domains.

"As a result, it is expected that the number of cases pending before various appellate forums will decrease, reducing tax litigation," the Finance Ministry stated.In line with the Union Budget 2024-25 announcements, the monetary thresholds for filing tax dispute appeals by the department were enhanced: for the Income Tax Appellate Tribunal (ITAT), it was raised from Rs 50 lakh to Rs 60 lakh; for High Courts, it was increased from Rs 1 crore to Rs2 crore; and for the Supreme Court, from Rs 2 crore to Rs 5 crore.

Due to these revised limits, it is estimated that approximately 4,300 cases will be withdrawn from various judicial forums over time, the Finance Ministry said. Adding further, the ministry stated that steps have been taken to deploy more officers dedicated to hearing and deciding income tax appeals, particularly those involving substantial tax amounts.

"These initiatives reflect the government's commitment to improving the 'Ease of Living' and 'Ease of Doing Business' across the country by reducing pending litigation," it added.