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Comtroller an audit general (CAG) busts myth of reduced tax dispute.


At the CIT appeals, the locked up amount rising from rupees 5.19lac crores in 2017-18 to 5. 63 lac crose in 2018 -19. Even though a series of dispute resolution initiative included in the latest ‘vivad se viswas' which was scheme an Oft-articulated commitment to reduce the backlog of litigation by withdrawing frivolous pleas, the governments tax officers at the field level seem to have relented little when it comes to tax aggression.

According to the Auditor General of India’s audit report with respect to tax Department for financial year 2018 the number of disputes an amount logged up at forums have only rise in. The amount logged up in appeal cases with CIT appeals was more than center’s revenue deficit

It is notice that there is increase in demand’ difficult to recover’ in what reflects the taxman’s refusal to stop pushing cases lacking merit and revenue impact of tax incentives was sticky until 2018-19. Even though government is vocal about the phasing out the exemption an other soaps to clear up the tax system. In year 2018-19 rupees 2,13,225 Where considered as revenue for gone and it has risen from 18.3% of direct taxes collected in 2016-17 to 18.7% in 2018-19.

According to the CAG report income tax appeal cases of all categories of taxpayers pending at income tax appellate tribunal (ITAT's) High Court and Supreme Court rose by Whopping 65% year on year to 1.35 Lac in fy19. The appeal in the court involved rupees 2,07,826 crores in fy18.

At the CIT appeals amount locked up rising from rupees 5.19 lac crores in 2017 -18 to 5.63 Lac crores in 2018-19 ‘demand difficult to recover’ has been increasing year after year and accounted 98.8% of arrears of demand in 2018- 19 as against 98.2% 2017 -18.Total areas of demand in 2018-19 accounted rupees 12,34,078 crores up to 10.8% compared to 2017-18 which was rupees 11,14,182 crores. However due to demand difficult to recover net collectible
demand decrease to rupees 14,593 crores in 2018 nineteen two 20,159 crores in 2017 -18” Increase in demand difficult to recover in FY 18 was more than increase in total arrears of demand during the same year by rupees 5,566 crores”, the CAG reported.

The ‘vivad se vishwas' scheme was aimed at encouraging people to avail the opportunity to avoid much higher tax liabilities. Dispute resolution process is under way in 35,078 cases based on number of submissions made to the Department under this scheme till September 8, 2020.

Source: s3solutions

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