While disposing the PIL filed by the All India Federation of Tax Practitioners, the Delhi High Court held that the road map drawn up by the CBDT includes the Central Action Plan for the FY 2022-23 wherein CBDT has formulated a real time and practical approach to dispose of the large number of appeals pending before the CIT(A)s, which addresses Petitioner's prayer for formulating a policy and issuing necessary direction to CIT(A)s for expeditious disposal of appeals

The High Court clarified that the road map drawn up by the CBDT in its additional affidavit adequately addresses the concerns raised by the Petitioner.

The Division Bench comprising of Chief Justice Satish Chandra Sharma and Justice Tushar Rao Gedela observed that “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”.

Senior Advocate Prem Lata Bansal appeared for the Petitioner while the Revenue was represented by Advocate Prashant Meharchandani.

After considering the submission, the Bench found that the Petitioner had suggested that working/sanctioned strength of the CIT(A)s should be increased substantially, and since the taxpayers have to mandatorily deposit 20% of the demand as pre-deposit for hearing of the appeal, further demands should not be raised till the appeal is decided.

With respect to the Petitioner's prayer for increase in the number of CIT(A)s and to provide such other infrastructural support as is required by them for disposal of appeals expeditiously, the bench noted the CBDT’s submission that it has made a request to the concerned authorities to increase the working strength of the CIT(A)s by way of promotions or direct in-take.

The Bench also pointed out that the Finance Act, 2023, has enabled JCIT/ACIT to decide the first appeals below the threshold of Rs.10 Lacs and the Department claims to have sanctioned 100 such posts, which will substantially reduce the pendency of appeals.

Accordingly, the High Court called the Union of India to take appropriate measures and decision for filling up of all the present posts of CIT(A)s lying vacant and also to consider increasing the sanctioned strength of CIT(A)s 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.

Lastly, the High Court added that the CBDT shall scrupulously implement its road map and the Union of India shall also earnestly address the directions.

Cause Title: All India Federation of Tax Practioners v. Union of India and Anr. [Neutral Citation: 2023: DHC: 8030-DB]

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Delhi High CourtChief Justice Satish Chandra SharmaJustice Tushar Rao Gedela

Pankaj Bajpai