Budget: FM proposes system to lessen litigation by IT department

Income Tax

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Feb 02, 2023

In a bid to lessen litigation in tax disputes, Finance Minister Nirmala Sitharaman on Wednesday proposed a case management system where the Income Tax department would defer filing a lawsuit if an identical question of law is pending adjudication in high courts or the Supreme Court. Presenting the Union Budget for 2023-24 in the Lok Sabha, Sitharaman said a lot of time and resources are consumed in filing appeals involving identical legal issues pertaining to income tax.

"Taking forward our policy of sound litigation management, I propose to provide that if a question of law in the case of an assessee is identical to a question of law which is pending in appeal before the jurisdictional high court or the Supreme Court, the filing of a further appeal in the case of this assessee by the department shall be deferred till such a question of law is decided by the jurisdictional high court or the Supreme Court," the minister said in her budget speech.

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