After praising the Income Tax (IT) Department for the Faceless Appeal Scheme, Delhi High Court has directed the Centre to fill vacant posts and increase the sanctioned strength. In the meantime, the IT Department informed the court that it has succeeded in disposing of over 62 per cent of new appeals under the faceless mechanism till July 31.

With this, the court disposed of a decade-old Public Interest Litigation (PIL) seeking formulation of a policy and issuance of necessary directions to Commissioners (Appeals) to take steps for expeditious disposal of appeals or within the time limit of one year as prescribed under the law.

Based on the information submitted in an affidavit filed by the Central Board of Direct Taxes (CBDT), the court said, “The concept of Faceless Appeals introduced since September 2020 by the department appears to have mitigated the issue of disposal of pending appeals.” On September 25, 2020, the Centre launched ‘Faceless Income Tax Appeal’ to further ease compliance and reduce physical interface between the assessee and the IT Department.

Earlier this year, in order to reduce the number of pending appeals, the Finance Ministry notified the e-Appeals Scheme as a follow-up to the budget announcement. Under this scheme, 100 Joint Commissioners (Appeals) will dispose of the small appeals (below the threshold of ₹10 lakhs) and this will be in addition to the Commissioner of the Income Tax-Appeal (CIT-A).

570 commissioners needed

While taking note of this development, the court also found that out of the sanctioned strength of 285 for CIT-A Unit (Faceless), the working strength is 188. Similarly for non-faceless, against the sanctioned strength for CIT-A of 64, the working strength is 41. The CBDT submitted that more than 570 Commissioners (Appeals) would be needed to deal with the pending appeals as in the year 2014. It appears that against the sanctioned strength 349 Commissioner (Appeals), only 229 Commissioners form the working strength as on July 2023.

Responding to that, the court said, “the Union of India may take appropriate measures and decision in that regard, in as much as filling up of all the present posts lying vacant would greatly assist in disposals of the pending appeals. The Union of India may also consider increasing the sanctioned strength of Commissioner (Appeals) substantially at least to the extent of 570 of such posts, to achieve the aims and objects of the Central Action Plan which is formulated every year.”

In its Central Action Plan for FY 2023-24, CBDT has set a target of 450 appeals to be disposed of by each CIT (A/AU) posted in Central and faceless appeal. Further, each CIT (A) posted in IT&TP appeal charges is expected to dispose of a minimum of 350 appeals Both of these do not include matters related to the Vivad se Viswas Scheme (VSVS). It has also been said that all appeals under VSVS need to be disposed of within one week of issue of Form 5. “Suffice to say that the CBDT shall scrupulously implement the aforesaid roadmap and the Union of India shall also address in all earnest and as soon as may be, the directions,” the Court concluded before disposing the PIL.

Related Topics
comment COMMENT NOW