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TMI Blog2023 (11) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... ation 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 mit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Board of Direct Taxes. On the basis of information, it is an undoubted position that the appeals are decided by Commissioners of Income Tax (Appeals) after long delays, which is causing harassment and cost to the assesses. 2B. That the delay in disposal of appeals by the Commissioners of Income Tax (Appeal) is adversely affecting large number of assesses and it is difficult for all of them to approach this Hon'ble Court. Therefore, this Writ Petition is being filed by the petitioner. 2C. That the present Petition is being filed in the interest of public at large and the assesses under the Income Tax Act and the Tax Practitioners in particular and accordingly, the relief sought in the petition will be in the interest of above persons and no other person / body / Institution is likely to be affected by the orders sought in the writ petition. The petitioner has impleaded Ministry of Finance and Central Board of Direct Taxes as Respondents as the Commissioners of Income Tax (Appeals) are working under their control and direction. 2D. That the Petitioner, All India Federation of Tax Practitioners is one of the oldest and the largest Association of Tax Pract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sanctioned Strength (SS) and Working Strength (WS) of CIT (Appeals) CIT (Appeals) SS WS CIT (Appeals) Unit (Faceless) CIT (A) (Non-faceless) SS WS SS WS 285 188 64 41 *Source: Database of CBDT B. No. of Appeals Pending (as on July 2023): The year wise breakup may be seen in table below. Data for 2022-23 is up to end of July, 2023. Financial year Total New Appeals Instituted Total Appeals Disposed Cumulative Pendency % of disposal to institution 2019-20* 2,16,441 98,868 4,57,808 45.68% Faceless Appeals (CIT(AU) Non-Faceless Appeals CIT(A) Faceless Appeals CIT(AU) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urce CAP 2023-24): Litigation management is one of the key priority areas of the Central Action Plan (hereinafter referred to as CAP) for FY 2023-24. Targets for disposal of appeals by CSIT (Appeals/ Appeals Unit) laid out in Para 4.2 of chapter III of CAP 2023-24 are as follows: i. Each CIT(A/AU) posted in Central and faceless appeal charges is expected to dispose of a minimum of 450 appeals (excluding VSVS orders) for the financial year 2023-24 and reach the overall target of 1000 points across various categories. Further, each CIT (A) posted in IT TP appeal charges is expected to dispose of a minimum of 350 appeals (excluding VSVS orders) for the financial year 2023-24 and reach the overall target of 800 points across various categories. ii. Dispose of 100% of appeals pending as on 01.04.2023 that involve demand of Rs.50 crore and above (Category Al). iii. Mandatory disposal of 100% appeals of A2 B1 category, filed prior to 01.04.2020. iv. Cases set aside and restored to the CsIT (Appeal) Units by Courts/ITAT are to be disposed of on priority. v. All appeals for which Form 5 under the Vivad Se Vishwas Scheme has been issued to be disposed of within 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 9. That apart, the concept of Faceless Appeals introduced since September 2020 by the department also appear to have mitigated the issue of disposal of pending appeals. 10. 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. However, the 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. 11. Ms. Prem Lata Bansal learned Senior Counsel, submitted the following suggestions for consideration of this Court:- a. Work ..... 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