CBDT set up panel to help bring down tax litigation

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The Central Board of Direct Taxes (CBDT) formed a 4-member committee, headed by income tax commissioner Sanjeev Sharma, to look into the matter of taxation related pain points and submit its final report and recommendations by mid-March.

It will tackle the issue by addressing some current pain points and recommending some steps borrowed from international best practices. The tax department is one of the biggest litigators in the country at present, but it ends up on the losing side in majority of the cases. As per government figures, 465,349 cases related to taxation are pending at various forums. Of this, about 1% cases are high value cases and constitute about 90% of the total tax demand. 

The committee may also look to address some immediate taxation-related pain points, including aggressive stance of tax offices that have shot off prosecution notices to many individuals and companies.

The Income Tax Department, also referred to as IT Department, is a government agency undertaking direct taxcollection of the Government of India. It functions under the Department of Revenue of the Ministry of Finance. Income Tax Department works under the apex body Central Board of Direct Taxes (CBDT) and its main responsibility is enforcement of various direct tax laws, most important among these being the Income-tax Act, 1961, though other economic laws like the Benami Transactions (Prohibition) Act and the Black Money Act are also implemented by the department.