URGES FM NIRMALA SITHARAMAN TO ADDRESS THIS CRITICAL SITUATION.
Face2News/Ludhiana
MP (Rajya Sabha) from Ludhiana Sanjeev Arora has written a letter to the Union Finance Minister Nirmala Sitharaman, seeking an action to address the huge pendency of Appeals before the Commissioners of Income-Tax (Appeals) nationwide.
In his letter, Arora wrote that he would like to express his deep concern regarding the significant backlog of appeals pending before the CIT(A). He added the current situation is worrisome because as of April 2024, a staggering number of over 5 lakh appeals remain unresolved with CIT(A), with a majority of these lodged within the recently implemented faceless appellate system. This immense backlog not only contradicts the commitment to timely decisions outlined in the Taxpayers' Charter but also raises fundamental questions about equity and fairness within the tax system.
Arora suggested introducing measures to provide relief to taxpayers facing unreasonable delays. This could include waiving the requirement for 20% prepayment during appeals; refunding excess tax collected/ recovered during prolonged delays; and granting automatic stay on penalties and prosecution proceedings for appeals exceeding a specific time limit.
Arora urged the Finance Minister to consider a few measures in the upcoming budget for addressing this critical situation.
He suggested enacting appropriate legislation to enforce stricter time limits on CIT(A) for appeal disposal for strengthening legal framework. The current advisory limit of 1 year should be made mandatory.
Arora suggested introducing measures to provide relief to taxpayers facing unreasonable delays. This could include waiving the requirement for 20% prepayment during appeals; refunding excess tax collected/ recovered during prolonged delays; and granting automatic stay on penalties and prosecution proceedings for appeals exceeding a specific time limit.
He opined on fixing accountability for delays and suggested establishing a system of accountability to address the root causes of delays within CIT(A).
Arora said the current pendency crisis discourages taxpayer compliance and undermines the integrity of the tax system. Taking swift action through these proposed measures will ensure a more efficient, fair, and transparent appellate system.
He urged FM Nirmala Sitharaman to give these suggestions her thoughtful consideration.