2024 (10) TMI 1616 - HC - Income Tax

Appeals pending before the appellate authority as on 26.09.2024 - issue of allotment of the appeals to each Commissioner of Appeals on average basis - HELD THAT - As remedial measures suggested by Central Board of Direct Taxes for reduction of the backlog of the pending appeals, it is stated that the CBDT has issued the guidelines for the priority/out of turn disposal on 19.03.2024 and 100 JCIT (Appeals) are appointed in the year 2023 and as per Section 345MA of the Income-Tax Act, 1961, e-Dispute Resolution Scheme, 2022 is notified and under Finance Act, 2024, new measures have been introduced and Vivad se Vishwas Scheme, 2024 is also introduced by Finance Act, 2024 and Commissioner (Appeals) have been empowered to set aside the ex-parte assessment orders. Except the above remedial measure, no other measures are stated in the affidavit with regard to as to how the pending appeals with the CIT (Appeals) which is around 1400 cases per Faceless CIT (Appeals) shall be heard and within what time span such appeals shall be disposed of by the concerned CIT (Appeals). No measures are mentioned with regard to bunching of similar appeals or repeated issues for different succeeding years in appeals, covered matters etc. which would speedily dispose of such appeals by CIT (Appeals). In the facts of the case by order dated 26.03.2020, the petitioner is already protected by restraining the respondent from taking any coercive action. Let there be a fresh additional affidavit-in-reply be filed by respondent Nos.3 to 5 before the next date of hearing as placing on record the data with regard to the average life of the appeal as well as the remedial measures to dispose of the appeals pending before the CIT (Appeals) and time bound programme for disposal of backlog of 5,80,188 pending appeals as on 26.09.2024.

Summary

Issues:
Pending appeals before appellate authority, Allocation of appeals among Commissioners of Income Tax (Appeals), Average life of pending appeals, Remedial measures for reduction of backlog, Time-bound disposal of pending appeals.

Analysis:
The High Court reviewed an affidavit-in-reply filed by respondent Nos. 3 to 5 regarding the total appeals pending before the appellate authority as of a specific date. The data revealed a significant number of appeals pending, categorized into Faceless CIT (A), Non-Faceless CIT (A), and JCIT (A). However, the affidavit lacked details on the allocation of appeals among different Commissioners of Income Tax (Appeals) based on working methods and types of appeals handled.

The Court noted the absence of information regarding the average life of pending appeals and urged the respondents to provide this data before the next hearing. Additionally, the Court emphasized the need for clarity on the allotment of appeals to each Commissioner of Appeals on an average basis, highlighting the disparities in pendency between faceless and non-faceless CIT (A) cases.

Regarding remedial measures, the Court acknowledged steps taken by the Central Board of Direct Taxes, such as issuing guidelines for priority disposal and introducing schemes like e-Dispute Resolution Scheme and Vivad se Vishwas Scheme. However, the Court expressed concern over the lack of specific measures in the affidavit to address the backlog of pending appeals effectively, including the absence of strategies for expediting the disposal of appeals and handling similar or repetitive issues efficiently.

In light of the observations, the Court directed respondent Nos. 3 to 5 to file a fresh additional affidavit-in-reply before the next hearing. The new affidavit should include data on the average life of appeals, detailed remedial measures for disposal of pending appeals, and a time-bound program for clearing the backlog of appeals. The case was adjourned to a later date for further proceedings, emphasizing the importance of addressing the pending appeals promptly and efficiently.