New Delhi: Inspite of having various
appellate tribunals and commissions within its establishment,
the Income Tax Department has registered a more than two-fold
rise in appeals in Supreme Court in cases involving crores of
rupees of the exchequer.
Sources in the department and the Central Board of
Direct Taxes (CBDT) attribute it to growing instances of
taxmen approaching the apex court over difference in
interpretation of Income Tax Act and Rules by the Income Tax
Appellate Tribunal (ITAT) and the Settlement Commission.
"The department feels that the interpretation of the
I-T rules and the Act by these quasi-judicial bodies is not
satisfactory in many cases. Moreover, the Supreme Court is the
ultimate institution, and its order is considered the law of
the land and hence the department is approaching it in an
increasing number of cases," a top Finance Ministry official
said.
A total of 1,172 appeals were filed by the I-T
department in the apex court in 2008-09 financial year, a more
than 100 per cent jump than 762 such appeals during the
2007-08 fiscal.
According to official data, the number of appeals
filed by the department at the ITAT has gone down to 17,831
last fiscal as compared to 20,022 appeals in 2007-08, while in
the High Courts appeals have declined to 9,251 (2008-09) in
comparison to 10,968 appeals (2007-08).
The government has established the ITAT at various
locations in the country while the Settlement Commission
benches are in Mumbai, Kolkata and Chennai with the Principal
bench at Delhi along with the office of I-T Commissioners
(Appeals) to adjudicate and resolve cases related to tax
arrears in respective areas.
"Crores of money is locked in these cases. It is
essential that an appropriate interpretation is taken so that
either the revenue is accrued by the department or goes to the
taxpayer in good time," the officer said.
While the department has slightly increased the number
of its prosecution counsel from six to eight as compared
to the 2007-08 fiscal, the number of Standing Counsel (24) has
gone down from 26 (2007-08) and Special Counsel are 20
(2008-09) as compared to 37 during 2007-08.
The judicial division of the CBDT deals with matters of
litigation in various High Courts pertaining to writ
petitions, other litigations of Direct Taxes, filing of
reference in cases of Central government offices and Public
Sector Undertakings.
In case of Special Leave Petitions filed in the apex
court, the department's legal wing processes an appeal right
from the initial processing and examination stage upto final
disposal by the court.
Further, it co-ordinates with the field formations of
the department from where the genesis of such litigations
arise besides closely liaising and interacting with the senior
Central government law functionaries like Additional Solicitor
General upwards .
It also provides response to the apex court's queries,
requirements, making available infrastructure support to the
Ministry of Law so as to ensure speedy and timely attention to
the department's matters before the apex Court.
PTI
First Published: Tuesday, March 23, 2010, 18:26