Delhi HC dismisses PIL on income tax appeals delay, directs filling vacant Commissioner posts under Section 250(6A)

Delhi HC disposed of PIL seeking expeditious disposal of income tax appeals within Section 250(6A) timeframe. Court found CBDT's roadmap and Central Action Plan 2022-23 adequately addressed petitioner's prayers regarding timely disposal and litigation management policy. While sanctioned strength is 349 Commissioner (Appeals), only 229 are working as of July 2023. CBDT requested more than 570 Commissioners needed for pending appeals from 2014. Finance Act 2023 introduced Joint/Additional Commissioners for appeals below Rs. 10 lakhs with 100 sanctioned posts. Court noted Faceless Appeals since September 2020 helped reduce pendency. HC directed Union of India to fill vacant posts and consider increasing sanctioned strength to 570 positions to achieve Central Action Plan objectives.

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Issues Involved:
1. Formulation of a policy for expeditious disposal of appeals by Commissioners (Appeals).
2. Increase in the number of Commissioners (Appeals) and infrastructural support.
3. Clear guidelines for chronological disposal of appeals and timely passing of orders.

Summary:

Issue 1: Formulation of a policy for expeditious disposal of appeals by Commissioners (Appeals)

The petitioner sought the formulation of a policy and necessary directions to ensure expeditious disposal of appeals by Commissioners (Appeals) within the time limit envisaged by Section 250(6A) of the Income Tax Act 1961. The Court noted that the CBDT had provided a roadmap for the disposal of pending appeals, as detailed in an additional affidavit. The CBDT's Litigation Management Policy under the yearly Central Action Plan addressed the specific grievances raised by the petitioner, thereby satisfying the prayers in clause (a) and clause (c) of the petition.

Issue 2: Increase in the number of Commissioners (Appeals) and infrastructural support

The petitioner requested an increase in the number of Commissioners (Appeals) and the provision of necessary infrastructural support. The Court observed that the CBDT had acknowledged the need for more than 570 Commissioners (Appeals) to handle the pending appeals as of 2014. However, as of July 2023, only 229 Commissioners were working against a sanctioned strength of 349. The CBDT had made requests to increase the working strength through promotions or direct intake and introduced the concept of Joint Commissioner/Additional Commissioners (Appeals) for appeals below Rs. 10 lakhs, which would substantially reduce the pendency of appeals. The Court noted that the Union of India, not the CBDT, should take appropriate measures to fill the vacant posts and consider increasing the sanctioned strength to at least 570 posts.

Issue 3: Clear guidelines for chronological disposal of appeals and timely passing of orders

The petitioner sought clear guidelines for the chronological disposal of appeals and the passing of orders within 10 days after the conclusion of hearings or within a reasonable period. The Court found that the CBDT's roadmap and the Central Action Plan for the Financial Year 2022-23 provided a practical approach to dispose of the large number of pending appeals. The concept of Faceless Appeals introduced since September 2020 also mitigated the issue of pending appeals. The Court was satisfied that the CBDT's measures adequately addressed the petitioner's concerns and did not find it necessary to pass further directions.

Conclusion

The Court concluded that the CBDT's roadmap and the Union of India's actions would address the concerns raised in the petition. The PIL was disposed of, with the Court emphasizing the need for the CBDT to implement the roadmap scrupulously and for the Union of India to address the directions regarding increasing the sanctioned strength and filling vacant posts.

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