Over 2 Lakh Pending Appeals To Be Cleared This Fiscal: Sitharaman To Income Tax Officials

Union Finance Minister Nirmala Sitharaman directed senior income tax officials on Monday to accelerate the disposal of pending tax appeals —with 2.25 lakh of the 5.77 lakh cases targeted for resolution in 2025–26, covering over Rs 10 lakh crore in disputed demand.

The push came as part of a broader message to deliver timely refunds, proactively resolve grievances and adopt a "taxpayer-first" approach.

Chairing the Conclave of Principal Chief Commissioners of Income Tax, the finance minister reviewed key performance areas, including litigation, refunds and service delivery. She called on the Central Board of Direct Taxes to significantly reduce appeal backlogs, particularly under the faceless appellate system.

Sitharaman also instructed officials to withdraw all departmental appeals that fall below the new monetary thresholds — Rs 60 lakh for ITAT, Rs 2 crore for high courts and Rs 5 crore for the Supreme Court — within three months.

On taxpayer services, Sitharaman was informed that over 82% of grievances received through CPGRAMS and e-Nivaran had already been resolved this year. Refunds for 2025–26, as of June 19, saw a 58% year-on-year growth, with Rs 23,376 crore issued via Orders Giving Effect and Rs 10,496 crore via rectification orders.

She emphasised the need for structured compliance processes, timely redressal of complaints and enhanced regional monitoring of service standards. The FM also lauded CBDT's work on the draft new Income Tax Bill and directed the department to begin preparations for nationwide awareness and training once it passes Parliament.

With a clear mandate to reduce litigation, improve delivery and rebuild trust, the finance minister’s message was firm: clear the backlog, serve the taxpayer, and simplify the system.