HC Disposed of AIFTP’s PIL After CBDT Provided an Affidavit for Expeditious Disposal of Pending Appeals

Case Details: All India Federation of Tax Practioners v. UOI - [2023] 156 taxmann.com 259 (Delhi)

Judiciary and Counsel Details

• • Satish Chandra Sharma, CJ. & Tushar Rao Gedela, J.
  • Prem Lata Bansal, Sr. Adv., Shivang Bansal & Anurav Kumar, Advs. for the Petitioner.
  • Prasant Meharchandani, Sr. Standing Counsel, Aksaht Singh, Jr. Standing counsel for the Respondent.

Facts of the Case

All India Federation of Tax Practitioners (AIFTPs) raised concerns about delayed disposal of appeals, causing harassment and costs to assess. Consequently, Public Interest Litigation (PIL) was filed under articles 226/227 of the Constitution, seeking various prayers related to expeditious disposal of appeals by Commissioners (Appeals) under the Income-tax Act, 1961.

Through this petition, AIFTPs urged the court to formulate a policy and issue directions to Commissioners (Appeals) for timely disposal of appeals, increase the number of Commissioners (Appeals), and provide necessary infrastructural support. Additionally, the AIFTPs requested clear guidelines for the chronological disposal of appeals and passing orders within ten days after the conclusion of hearings.

After such petition, the Central Board of Direct Taxes (CBDT) filed an additional affidavit dated 09.10.2023. According to the affidavit, the CBDT has provided how, in the past and also in the future, pending appeals are to be dealt with and disposed of expeditiously. The details with respect to updated statistics for Appellate Authorities, pending appeals, and action plan for disposal of appeals were discussed in the said additional affidavit.

High Court Held

The Delhi High Court held that the CBDT had formulated a real-time and practical approach to dispose of the many pending appeals before various commissioners (Appeals).
It also appears that the CBDT has requested the concerned authorities to increase the working strength through promotions or direct in-take, as the case may be. It also becomes clear that the Finance Act 2023 introduced a concept where joint

Commissioner/Additional Commissioners (Appeals) will decide the First Appeals below the threshold of Rs. 10 lakhs. The department claims to have sanctioned 100 such posts, which, according to it, will substantially reduce the pendency of appeals.

Therefore, considering the road map drawn up by the CBDT in the additional affidavit, it addresses all the concerns raised by the petitioner, and the appeal was disposed off without any further directions.