The Hindu Business Line : Settlement of 400 tax arrears cases to be expedited

THE Government has assured the Standing Committee on Finance that it would try to speed up settlement of those 400 cases in which 78 per cent of the accumulated direct tax arrears of Rs 88,000 crore are locked up.

An analysis of the accumulated direct tax arrears, undertaken by the Finance Ministry, has revealed that about 78 per cent of the Rs 88,000-crore arrears are locked up in around 400 cases only.

"We would try to speed up settlement of these 400 cases through our counsel and through whatever judicial means are available in various courts to get a decision taken. If they are against us, we shall write them off. If they are in our favour, we should collect those arrears", the Government has told the Standing Committee on Finance. The Committee has in its report observed that the amount locked up in tax disputes have increased over last year. "It is highly disturbing to note that there are 4,868 cases where arrear demand in each case is Rs 1 crore and above, amounting in all to Rs 68,477 crore as on December 31, 2003", said the Committee's report tabled in Parliament on Friday.

Of the accumulated tax arrears of Rs 88,000 crore, arrears amounting to Rs 17,000 crore are undisputed and a recovery target of Rs 7,000 crore has been fixed for this year.

As a multi-pronged approach for recovery of tax arrears, the Government has already requested the Settlement Commission to expedite orders in the high demand cases. Request has also been made to the Income Tax Appellate Tribunal that it should not grant stay beyond the statutory period of 180 days.

To expedite disposal of appeals, the Central Board of Direct Taxes has fixed disposal norms of 75 units per month for each Commissioner of Income-Tax (appeals), which is monitored by the administrative Chief Commissioner of Income-Tax/ Director General of Income-Tax (Inv)/Board.

The Board has also issued directions to the effect that all appeal orders should be issued within 15 days of last hearing and any violation would be viewed seriously.

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