FM Sitharaman Orders Withdrawal of Low-Value Tax Appeals Within Three Months

In a major move to reduce tax litigation, Finance Minister Nirmala Sitharaman has ordered the income tax department to withdraw all pending low-value tax appeals within the next three months. The directive is based on the government's litigation management policy, which has set monetary thresholds below which the department should not file appeals. This will lead to the withdrawal of a large number of pending appeals before various forums like the ITAT and High Courts. The move will provide immediate relief to thousands of small and medium-sized taxpayers who are caught in long-drawn legal battles over small tax demands. It will also free up the resources of both the judiciary and the tax department, allowing them to focus on high-value and more complex tax disputes, thereby improving the overall efficiency of the tax system.