The income tax department is looking to cut down on mammoth pendency levels in the current fiscal with a target of disposing 200,000 appeals at the level of CIT (Appeals), which are estimated to be at Rs 10 lakh crore of disputed amount.
This shall include compulsory disposal of top 1,500 appeals in terms of disputed demand, the CBDT has underlined, adding that focussed efforts must be taken to liquidate substantial number of appeals involving disputed amounts in legacy appeals.
This is one of the key action points in the Central Action Plan of the Central Board of Direct Taxes for 2025-25. The central action plan outlines the key strategies to be followed by field offices of the income tax department in a particular fiscal year to check tax evasion, widen the tax base and meet the tax collection target.
For FY26, the government has set a target of Rs 25.2 lakh crore from direct taxes, which includes Rs 10.82 lakh crore from corporate tax and Rs 13.6 lakh crore from non-corporate taxes.
The number of pending appeals has come down to 5.38 lakh as on April 1, 2025, from 549,000 a year ago. The CBDT has also highlighted that a record 172,000 cases involving Rs. 6.22 lakh crore were disposed off during FY 24-25 by CIT(A), as against 162,000 new appeals instituted.
Experts welcomed the focus of the CBDT on reducing pendency. Amit Maheshwari, Tar Partner, AKM Global pointed out that this plan promises faster resolution of disputes and greater transparency.
“It reflects the government’s commitment to easing the burden on honest taxpayers and streamlining the tax administration system. Much of the faster disposal of appeal can be attributed to introduction of parallel authority of Joint Commissioner of Income Tax (Appeals),” he noted.
However, CBDT has cited the shortage of manpower at CIT(A) level in the Action Plan and hence, field officers need to ensure that appeals are properly examined and disposed efficiently.”
As part of its strategy to enhance tax collections this fiscal, the CBDT has also asked officials to closely monitor top advance taxpayers and identify bogus claims of exemptions and deductions.
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