Disputed tax demand down `16,690 crore since hike in monetary limit for filing appeals, LS told

The increase in monetary thresholds for filing tax dispute appeals at the Income Tax Appellate Tribunal, high courts, and the Supreme Court has led to a ₹16,690 crore reduction in disputed tax demand, Parliament was informed on Monday.

In a written reply to the Lok Sabha, Finance Minister Nirmala Sitharaman provided details of cases withdrawn or left unfiled, alongside the estimated reduction in disputed tax demand resulting from enhanced monetary limits for departmental appeals implemented since September 17, 2024.

Authorities withdrew 443 cases and refrained from filing 11,390 appeals before the Income Tax Appellate Tribunal following the threshold revision. This resulted in an estimated tax demand reduction of ₹3,662.82 crore at the tribunal level.  

Before the high courts, 4,791 cases were withdrawn and 5,565 appeals went unfiled, contributing an estimated ₹9,218.71 crore reduction in disputed demand. At the Supreme Court, 744 cases were withdrawn and 534 appeals were not filed, lowering disputed tax demands by an estimated ₹3,807.15 crore.