Target of disposing appellate cases accounts for almost 14% of the total tax revenue planned in the current year's budget at Rs 9,77,258 crore
The tax department has prepared a blueprint for disposal of cases locked in appeals worth Rs 1,34,000 crore in the current financial year in order to shore up the ambitious tax revenue collections announced in the budget by finance minister Arun Jaitley. The Central Board of Direct Taxes (CBDT) has set up the target earlier this month.
The department has also specified date-wise targets for collection of data of companies that have filed annual returns for the purpose of deepening of tax base.
The target of disposing the appellate cases worth Rs 1,34,000 crore, accounts for almost 14% of the total tax revenue planned in the current year's budget at Rs 9,77,258 crore. This in itself is an ambitious target which is 17% higher than the revised estimates for tax collection for 2013-14 at Rs 8,36,026 crore. Also, it is almost half the amount locked in appeals at about Rs 3 lakh crore.
According to the CBDT document – a copy of which is in possession of dna – Mumbai, Delhi and Gujarat have been given the highest targets for settling the tax disputes. Mumbai has been given a target of settling disputes worth Rs 20,830 crore, while Delhi will have to settle cases worth Rs 16,887 crore by the end of the current financial year. Cases worth Rs 13,441 crore will be settled in Gujarat. An income tax commissioner told dna, "The income tax department will create three boxes for the disposal of appeals which will be taken up as per priority."
According to the CBDT document, the appeals will be divided into three different baskets indicating the order of priority for disposal. All high demand appeals – involving disputed demand worth Rs 10 lakh and above – pending as on April 1 will be in the first basket. All appeals other than high demand appeals filed before April 2013 will be in the second basket and all appeals other than high demand appeals filed between April 1, 2013 and March 31, 2014 in the third basket. The dispute arising in the current financial year will form the part of the fourth basket.
The department has set tough target for disposing the cases in the baskets. "Commissioner (Appeals) may plan their work so as to dispose off at least 90% of B-1 category appeals during the year. Target of other than B-1 category appeals should be met by disposing at least 80% of B-2 category appeals. However, the CIT (A) can take up any case on priority," said the CBDT action plan.
An assessee has to deposit at 50% of the disputed amount if in case he chooses for taking the matter to appeals. The government pays back the money with an interest of 6% in case it loses the case.
The CBDT has also set the target for completion of time bound transfer pricing audits. The department has asked to identify litigation cases involving important issues of international taxation or transfer pricing, pending at various appellate levels by July end.
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