Accelerate Disposal Of Disputed Tax Demands: FM

Out of the total 160,229 grievances (CPGRAMS & E-nivaran) for FY 2025-26, 1,31,844 grievances were resolved (up to 17.06.2025), leading to 82.28% disposal.

FM Nirmala Sitharaman emphasised the need for the timely processing of tax refunds and the proactive resolution of taxpayer grievances.

FinTech BizNews Service 

Mumbai, June 23, 2025: Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman chaired the Conclave of Principal Chief Commissioners of Income-tax (Pr.CCsIT) in New Delhi today.

The meeting was also attended by Shri Arvind Shrivastava, Secretary, Department of Revenue; Shri Ravi Agarwal, Chairman CBDT; Members of CBDT and senior officers of CBDT.

The  Finance Minister was apprised about the following key performance indicators:

Taxpayer Service (grievance redressal & refunds):

• Out of the total 160,229 grievances (CPGRAMS & E-nivaran) for FY 2025-26, 1,31,844 grievances were resolved (up to 17.06.2025), leading to 82.28% disposal.  
• Refunds issued for F.Y 2025-26 as on 19.06.2025 as compared to F.Y 2024-25 saw 58.04% growth, showing better Taxpayer services
• Rs 23,376 Cr refunds issued on account of Order Giving Effects and Rs 10,496 CR refunds issued on rectification in F.Y 2025-26.

Litigation Management:

• Out of the pending 5.77 lakh appeals, over 2.25 lakh appeals are targeted for completion in FY 2025-26, addressing over Rs10 lakh crore of disputed demand.
• Around 4605 cases were withdrawn after the monetary limits were raised in 2024, and in around 3120 cases, appeals were not filed as the monetary limits for filing appeals were increased.
• Smt. Sitharaman noted that the Central Board of Direct Taxes (CBDT) has undertaken several significant reforms in recent years, particularly in faceless assessment, e-verification system, tax exemptions & changes in slab rates , and digital service delivery. She called for further consolidation of these reforms to deliver tangible benefits to taxpayers.

The Union Finance Minister directed all Principal Chief Commissioners of Income Tax (PrCCsIT) to prioritize and accelerate the disposal of disputed tax demands that are currently pending before the faceless appellate authorities. This is aimed at reducing litigation backlog and ensuring timely resolution, thereby enhancing taxpayer trust in the system.

The Union Finance Minister instructed that all departmental appeals falling below the revised monetary thresholds as notified in recent policy changes be identified and withdrawn within a period of three months.

As per the announcements in the Union Budget 2024-25, the monetary thresholds for filing tax dispute appeals by the department were enhanced as follows:

· For Income Tax Appellate Tribunal (ITAT): Increased from Rs50 lakh to Rs60 lakh.

· For High Courts: Increased from Rs 1 crore to Rs2 crore.

· For Supreme Court: Increased from Rs2 crore to Rs5 crore.

During the conclave, Smt. Sitharaman emphasised the need for the timely processing of tax refunds and the proactive resolution of taxpayer grievances.  PrCCsIT were asked to monitor these areas closely and adopt a taxpayer-centric approach to improve service delivery and transparency.

The Union Finance Minister took note of the grievance cases on CPGRAMS and e-Nivaran platforms. She directed the CBDT to expedite resolution by analysing the nature of grievances and devising strategies not only to resolve the existing pendency but also to address the challenges that are causing the grievances in the first place.

Smt. Sitharaman directed the CBDT to significantly reduce pendency in grievance redressal mechanisms such as CPGRAMS and e-Nivaran pertaining to the department. She emphasised that prompt and time-bound disposal of taxpayer grievances is essential for ensuring responsive governance.

Smt. Sitharaman emphasised the importance of the CPGRAMS platform as a key tool for taxpayer engagement and grievance redressal. She directed that regional performance in handling CPGRAMS cases be closely monitored, and corrective measures be initiated where necessary to ensure uniform service standards across the country.