2023 (11) TMI 297 - HC - Income Tax

PIL for expeditious disposal of appeals or within the time limit envisaged by Section 250(6A) - Timeframe for Disposal of Appeals pending before Commissioner (Appeals) in Income Tax - Working/Sanctioned Strength of the Commissioner (Appeals) - additional affidavit filed on behalf of the CBDT wherein CBDT has provided the manner in which, in the past as also in the future, pending appeals are to be dealt with and disposed of expeditiously - HELD THAT - We are satisfied that the prayers as sought by the petitioner have been suitably addressed by the CBDT. Also, upon a perusal and consideration of the aforesaid road map including the Central Action Plan for the Financial Year 2022-23, it appears that the CBDT has formulated a real time and a practical approach to dispose of the large number of appeals pending before various Commissioner (Appeals). So far as the prayers in clause (a) and clause (c) of the petition are concerned the same appear to be satisfied in terms of the Litigation Management Policy framed under the yearly Central Action Plan. In fact, the said policy also addresses the specific grievances raised by the petitioner. So far as the prayer in clause (b) is concerned, the CBDT has submitted that more than 570 Commissioners (Appeals) would be needed to deal with the pending appeals as in the year 2014. It appears that as against the sanctioned strength 349 Commissioner (Appeals), only 229 Commissioners form the working strength as on July 2023. It also appears that the CBDT has made a request to the concerned authorities to increase the working strength by way of promotions or direct in-take, as the case may be. That apart, it also becomes clear that the Finance Act, 2023, has 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. In that, the greater percentage of the pending appeals belongs to this bracket/category. Concept of Faceless Appeals introduced since September 2020 by the department also appear to have mitigated the issue of disposal of pending appeals. We are satisfied that so far as increasing the sanctioned strength or the filing up of vacant posts of the Commissioner (Appeals) is concerned, the CBDT may not have any role to play. Union of India, which is respondent no. 1 in the present petition, may take appropriate measures and decision in that regard, inasmuch 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.

Summary

Issues Involved:
1. Formulation of a policy for expeditious disposal of appeals by Commissioners (Appeals).
2. Increase in the number of Commissioners (Appeals) and infrastructural support.
3. Clear guidelines for chronological disposal of appeals and timely passing of orders.

Summary:

Issue 1: Formulation of a policy for expeditious disposal of appeals by Commissioners (Appeals)

The petitioner sought the formulation of a policy and necessary directions to ensure expeditious disposal of appeals by Commissioners (Appeals) within the time limit envisaged by Section 250(6A) of the Income Tax Act 1961. The Court noted that the CBDT had provided a roadmap for the disposal of pending appeals, as detailed in an additional affidavit. The CBDT's Litigation Management Policy under the yearly Central Action Plan addressed the specific grievances raised by the petitioner, thereby satisfying the prayers in clause (a) and clause (c) of the petition.

Issue 2: Increase in the number of Commissioners (Appeals) and infrastructural support

The petitioner requested an increase in the number of Commissioners (Appeals) and the provision of necessary infrastructural support. The Court observed that the CBDT had acknowledged the need for more than 570 Commissioners (Appeals) to handle the pending appeals as of 2014. However, as of July 2023, only 229 Commissioners were working against a sanctioned strength of 349. The CBDT had made requests to increase the working strength through promotions or direct intake and introduced the concept of Joint Commissioner/Additional Commissioners (Appeals) for appeals below Rs. 10 lakhs, which would substantially reduce the pendency of appeals. The Court noted that the Union of India, not the CBDT, should take appropriate measures to fill the vacant posts and consider increasing the sanctioned strength to at least 570 posts.

Issue 3: Clear guidelines for chronological disposal of appeals and timely passing of orders

The petitioner sought clear guidelines for the chronological disposal of appeals and the passing of orders within 10 days after the conclusion of hearings or within a reasonable period. The Court found that the CBDT's roadmap and the Central Action Plan for the Financial Year 2022-23 provided a practical approach to dispose of the large number of pending appeals. The concept of Faceless Appeals introduced since September 2020 also mitigated the issue of pending appeals. The Court was satisfied that the CBDT's measures adequately addressed the petitioner's concerns and did not find it necessary to pass further directions.

Conclusion

The Court concluded that the CBDT's roadmap and the Union of India's actions would address the concerns raised in the petition. The PIL was disposed of, with the Court emphasizing the need for the CBDT to implement the roadmap scrupulously and for the Union of India to address the directions regarding increasing the sanctioned strength and filling vacant posts.